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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (148576)	1/18/2013 10:42:10 PM
From: Win-Lose-Draw	Read Replies (2) \| Respond to of 213177

I'm curious what people's spending patterns at the iTunes store are like. In our household, which is packed with all manner of Apple devices, we've spent maybe $300 over the past 5 years on "content". A chunk of that would be Match (not technically even "content", but whatever, close enough), next piece would be maybe a dozen or so film rentals over the years, and the rest various and sundry iOS and OSX apps. I don't know what Apple's margins are on the content side, but without question, they have booked a LOT more profits from us from hardware sales.

To: slacker711 who wrote (148576)	1/19/2013 12:12:28 AM
From: pyslent	Read Replies (1) \| Respond to of 213177

In FY Q4 12, Apple reported this. Can we assume Apple takes 30% across the board? Then iTunes is now grossing $600m per quarter, or about the same as 2 million iPhones. The iTunes Store generated all time record results, with revenue almost $2.1 billion thanks to continued strong sales of music, apps and video. I'm assuming that "revenue" from iTunes is defined as the amount collected at the register (eg, the priced paid for the app or song, before the developer or record label gets their share), rather than Apple's cut (which I called "gross," in the above). Do you know if this is correct?

To: slacker711 who wrote (148576)	1/19/2013 12:45:21 AM
From: DanD	Respond to of 213177

I had expected content to accelerate more. The cycle has in the past has been: hardware -> software -> services. Where the next in the cycle replaces the first in importance and profits. The app market gives Apple a fixed percentage of software and other content revenues, and I had expected it to give Apple a significant advantage going forward. It might take more time, and might not be as directly profitable as I one hoped, but I am not ready to throw in the towel completely on the idea. Dan D.