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Oyvoyvoyv said: Sorry, that last post was a bit harsh against Apple, but that it is mainly because I've heard that Apple makes the best so many times, with little to no proof. Plapatius, no, I meant in concrete unit sales, not unit vs revenue. As for the part about owning the market, I think it's simply that we use different meanings of the word. To own a market, I believe you have to have a close to monopoly. I also checked a bit on your last comment, and I found this, which is kind of interesting. Apple loses money on Ipods sold in USA, and go even in most countries. They earn in some countries where prices are high, but their overall Ipod hardware sales are at a slight loss. They lose money on Iphones sold. They earn minimally from their Macs sold, at least the ones I looked at. Apple TVs - no idea.
So looking at this, they earn pretty much all their money from Itunes, (and a tiny bit from Mac software). Selling 5 million songs a day isn't all that bad :D
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Can you give me the source for that? My understanding is that Apple make money on hardware, but the way they account for it is a bit complicated. Apparently, the income from iPods/iPhones is spread out over 2 years, or 8 quarters, though I'm not 100% sure on this. English is not my native language and some of the accounting terms are quite hard to grasp even in my native language, let alone in English.
I recall, however, statements from Apple regarding the AppStore that they see it as something like the iTunes Store, adding to the value of iPod/iPhone, but not really creating that much income for them. Though, at 5 million songs a day, the iTunes store would create around 2 billion dollars of revenue per year, and I can't imagine it would be running at cost. Anyway, since Apple reported 1 billion dollars of profit for the last quarter, and by your numbers iTunes creates "only" 500 million dollars of revenue per quarter, it's apparent that Apple makes most of the money with hardware and software .
