Accessories and iTunes Mean Big Money for Apple

By Steve Anderson February 12, 2013

While Apple stock has taken a bit of a tumble in recent days, there's still plenty of profit to be had in Apple. A recent analysis from Asymco took a look at Apple's profit profile and compared it to several other mobile phone makers and discovered something very unusual: when it comes to profit, Apple makes more from just accessories and iTunes combined compared to other companies in the market which make their profits from phone sales alone.

Apple's total revenue from iTunes and accessory sales represented fully $5.5 billion for the first fiscal quarter of 2013, according to the latest earnings release. That actually represents a larger total number than the total revenue realized by Nokia, Motorola, Sony, LG, HTC and BlackBerry. Only one company could stand up against the revenue realized by just two parts of Apple's business, and that was Samsung. Moreover, the revenue generated by iTunes and accessories for Apple represent more than the income made from Microsoft's Windows Phone and Xbox divisions combined.


Image via Shutterstock

The analysis further revealed that the revenue realized from iTunes represented the fourth largest business Apple had in its overall quiver, leaving the iPod behind two years ago. Comparing the growth of iTunes to the Mac's numbers suggests that the iTunes business could well become the third largest part of Apple's business by the end of 2013.

This comes hot on the heels of the revelation that Apple was closing in on a billion dollars a year in income just from the payments Google makes to Apple to keep the Google search engine as the default search engine of iOS hardware. By the end of 2014, meanwhile, it was suggested that that number may well clear the billion dollar mark.

On a certain level, it makes sense. Apple's primary product line looks more and more mobile with every passing year. While there's still plenty of action in the desktop department, and of course in the MP3 player department, the growing parts of the enterprise are clearly the iPad, the iPhone, and the assorted variety of content that accompanies these devices. There are so many separate parts of iTunes that it makes sense to see iTunes represent such a large portion of the whole. The music, of course, but also the movies and TV shows, the books, the podcasts—and of course, the endless array of apps—all adds up to make a picture that's increasingly weighted in that direction.

Apple's increasing focus as a mobile company helps change the picture, and the sheer amount of profit Apple's pulling in from those divisions—increasing mobile device proliferation and support for the software found on those devices (and the assorted cases and keyboards and the like that goes with them)--only helps to cement the perception all the more.




Edited by Brooke Neuman

Contributing TechZone360 Writer

SHARE THIS ARTICLE
Related Articles

Rising Mobile Broadband Accessibility and Usage Impacting Global Social and Economic Growth

By: Laura Stotler    5/28/2015

Information and communication technologies (ICTs) are having a direct impact on social and economic development, according to interesting new research…

Read More

Avago Technologies Acquisition of Broadcom: Let The Chips Fall Where They May

By: Peter Bernstein    5/28/2015

With a combined valuation of roughly $77 Billion and revenues of $15 Billion once the transaction closes the new Avago will have the human and technic…

Read More

Digital Ad Viewability: The New Metric for Monetization

By: Tara Seals    5/28/2015

Verizon Communications raised a few eyebrows earlier this month when it announced plans to acquire AOL for $4.4 billion. It seemed a lot to pay just t…

Read More

Future Watch Apps May Surprise You

By: Mike Russo    5/27/2015

If there's one thing that's abundantly clear about the Apple Watch, it's that this isn't your grandpa's timepiece. Oh, it tells time, sure. The rest i…

Read More

Why Apple iOS is Dominating Google's Android

By: Rob Enderle    5/27/2015

Apple's iOS platform is kicking Google Android's butt all over the Smartphone playground. This battle has been fascinating to watch because it seemed …

Read More