iTune Sales Could hit $2B
Everyone knows the iPod continues to post stellar sales but iTunes could be about a $2-billion business, according to IP Democracy’s Cynthia Brumfield, who drilled down into Apple’s fiscal first-quarter results. While Apple doesn’t break out its iTunes sales, the “other” category on its financial statement, which is likely dominated by the popular music and video service, saw revenue increase 29% to $631-million from $491-million from the previous quarter.
“Assuming that most of the revenue in this combined reporting category flows from the sale of music, TV shows and films, Apple’s revenues from the sale of media products could be nearing the $2 billion range. An impressive figure that is 67% higher than the $1.2 billion generated for fiscal Q2 05 through fiscal Q1 06,” Brumfield said.
Brumfield’s number crunching throw some cold water on the controversial Forrester Research report that suggested iTunes sales collapsed last year. For its part, Apple brushed off the research, which was based on credit and debit card transactions.
January 22nd, 2007 at 5:53 pm
Do you think Apple charges for advertising on iTunes? Seems to me they must - I wonder how much that real estate is worth.
January 22nd, 2007 at 7:37 pm
I suspect a lot given the popularity of the service. Still, the bulk of revenue has to come from selling music and video so even if they were doing $100 million a quarter in advertising, that still means they selling $600 million of product.