The 10 years old iTunes service developed by Apple has helped the Fruit Company to round up it earnings with more than $13.5 billion profit.
The long maintained iTunes Store was designed mostly for selling music content for all iOS users. However, during time, things have changed a lot, and now, the iTunes service offers multiple benefits and options. Users are able to download music, films, TV shows, e-books and even apps. This makes Apple revenue to increase reaching up to $2 billion profit per year.
What we know as iTunes today has changed a lot during the time. Although the profit of all amount of files sold is preserved to 30%, as a normal ratio, the transaction volume reaches a higher level, which shows a significant economic growth. For example, the number of item transactions during the year of 2012 is estimated to reach up to 23 billion items. If you ask me, this means a lot.
If at first iTunes was considered to be a spare time business for Apple, it has now transformed into a wealthy revenue source, which is estimated to reach up to $13.5 billion a year. This is much more than the iPod line offers to the Fruit Company. Based on past recordings, the annual rate is growing with 32% a year. This is a high number for a simple service, which does not bring significant improvements as time passes.
However, this amount of annual profit includes the iTunes, the App Store, the Mac Store and the iBookStore as well. What brings more than $2 billion per year is their well-debated iTunes store. This means that music files still offers productive and valuable content for the Silicon Valley-based Company. In what concerns the other products promoted by Apple such as apps, films and software products, things still need to be reshaped a little bit.
As the number point out, the software group within iTunes represents a valuable asset for Apple. This includes products such as iWork with Pages, Numbers and Keynote, iLife with iMovie, iTunes, iPhoto and GarageBand, Final Cut Pro, Motion, Logic Pro, Compressor, xCode for integrated development and Apple Remote Desktop.
For Apple, music still represents a valuable content to be traded within Apple boundaries. After all, the iTunes service offers the higher amount of profit per year, compared to the other three profit generators. This should also generate a transition from Apple part in what concerns downloading and streaming music within their famous iTunes Store.