This may not come as a total surprise, but the revenue Apple brings in from its iTunes store and the handful of accessories it sells is actually more than what most companies bring in from phone sales alone.
Asymco, a research firm, broke down the claims, saying that Apple is doing just that — bringing in more money from things that complement its iPhone that other companies bring in from phones alone. The only company Apple doesn’t beat out in this category is Samsung, who has been picking up steam as of recently.
From the report:
There are several observations we can make:
1. iTunes now becomes a steadily and rapidly growing business. Growth over the previous two years averages well over 30% and is consistent across seasons.
2. The absolute revenue number is substantial: $13.5 billion for 2012 (up from $10.2 billion in 2011).
3. Assuming a gross margin of 15% to 17% yields contribution of $2 billion in margin in 2012 and $1.6 the year before.
4. iTunes is now Apple’s fourth largest business, having overtaken the iPod in revenues two years ago
5. iTunes growth relative to the Mac means that it could become the third largest business during this year.
“iTunes+Accessories combined is a bigger business in terms of revenues than any of the other phone vendors except Samsung,” writes Horace Dediu, author of the analysis. “iTunes is now Apple’s fourth largest business, having overtaken the iPod in revenues two years ago. iTunes growth relative to the Mac means that it could become the third largest business during this year.”
That’s pretty shocking, but again, not surprising.
The iPod was the original driving force behind the iTunes store, but it has sense been surpassed in terms of revenue. And the same is about to happen with the Mac.