Apple to take over the living room?

[Plaupius]

Oyvoyvoyv said:

rocketpig said:

Words Of Wisdom said:

Oyvoyvoyv said:

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

 

This is a nearly worthless thread but that information is really interesting.  Would you please quote your sources?

 

Whoa. I find that information highly suspect. In the past, I know Apple was making huge profits on iPod but not the iTunes Store. I doubt that has changed.

As for the iPhone, it was calculated at launch they were making ~$1000-1500 from each sale once their cut from AT&T was added in (now their contract is done differently). I can't remember the exact number but it was obnoxiously high.

Sorry, but I call BS on that. Apple can't be turning the profits they do and sell their iPods/iPhones at a loss, especially when it contradicts things I have read in the past.

 

 WoW, it's from the Aftenposten newspaper in Norway. They did a 3 page report on Apple, and they stated the Ipod and Iphone facts.

The Mac stuff, I'm unable to find.

The Itunes stuff, was my assumption only. How can you not earn money on selling songs? It doesn't make sense that they aren't making heaps on selling songs downloadable. I mean, what expenses do they really have?

Well, considering other sources, such as iSuppli, it's highly questionable that Apple would be selling their hardware at a loss.

About the iTunes profits, we have the statement from Apple themselves comparing the AppStore to the iTunes store and stating that they're not expecting to profit much directly from the sales of Apps, but they do it to make the iPhone more attractive.

Also, the numbers just don't add up. For each song Apple sells, they have to pay the record companies royalties. They also have to cover the expenses of running the iTunes Store. For AppStore, they take 30% cut, and if they are not intending to make money ut of it, it's a good baseline to estimate the costs of running the iTunes store as well. If we are to believe this source, Apple would take 29 cents of the 99 cents, which is very close to the 30% margin of App Store. Which would pretty much mean that the iTunes business is running at cost.

I already pointed out that if Apple were to get 100% profit from the iTunes sales, it would still only account for about half of their profits, so they are making heaps of money elsewhere. Some of it comes from software sales, and some of it from hardware.