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Apple Makes More From iTunes and Accessories Than Most Companies Do From Phones

An analysis by Asymco of Apple's newly-introduced revenue breakdowns claims that Apple made more money from iTunes and accessories sales alone than all other companies except Samsung made from phone sales during the most recent quarter.

asymco_itunes_phone_revenues
As noted in its latest earnings release for the first fiscal quarter of 2013, Apple's total revenues from iTunes and accessories amounted to over $5.5 billion - ahead of the total phone revenues of each of Nokia, Motorola, Sony, LG, RIM (now rebranded as BlackBerry) and HTC.

Analysis author Horace Dediu also notes that iTunes may be worth more to Apple than its Mac business within the current year.
iTunes+Accessories combined is a bigger business in terms of revenues than any of the other phone vendors except Samsung. iTunes is now Appleā€™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.
The figures also make iTunes bigger than Microsoft's combined Xbox and Windows Phone divisions.

Meantime, Morgan Stanley analyst Scott Devitt (via Business Insider) suggests that Apple receives around a billion dollars a year from Google in return for making Google the default search on iOS devices, up roughly tenfold from just three years ago. It had previously been believed that Apple had a revenue-sharing deal with Google, but Devitt believes Apple would have gone for the neater and less risky option of a flat fee per device sold.

The steep rise in value for the search deal is said to have been driven in part by Microsoft which has been becoming increasingly aggressive about making such deals for its Bing search engine but has yet to secure a partnership with Apple for iOS to make the switch.

Top Rated Comments

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23 months ago
This is the most confusing London Underground map I have ever seen.
Rating: 17 Votes
23 months ago

Why was Samsung left off this chart?


Because they say iTunes + Accessories revenue is more than 'most' companies, not including Samsung, so there's no need to fit Samsung in this chart.
Rating: 12 Votes
23 months ago
Why was Samsung left off this chart?
Rating: 7 Votes
23 months ago
Wow. Just wow. The foresight and pure genius of Steve Jobs continues to blow my mind. What a legacy.
Rating: 7 Votes
23 months ago

Why was Samsung left off this chart?


"iTunes+Accessories combined is a bigger business in terms of revenues than any of the other phone vendors except Samsung."

Because statistics are manipulated to prove the point you are trying to make.
Rating: 6 Votes
23 months ago
Interesting, but I would rather compare profit than revenue. itunes was once considered breakeven? How do we know it's still not the case? Nearly 6B in revenue... but is that even a net profit? (of course it absolutely is, but I'm just making a point)

Why was Samsung left off this chart?


Because it is the only company that would be above iTunes revenue. And far above it too...
Rating: 4 Votes
23 months ago
Samsung was left out, because then Apple wouldn't be on top.
Even though the text clearly states "more than most" it is a bit ridiculous.
Rating: 4 Votes
23 months ago
The title of this is misleading....

Revenue means sales dollars.... this is not profit.

To say they make more from iTunes than other make from phones is a wrong depiction. And this is why people who don't understand financial numbers always get confused.
Rating: 4 Votes
23 months ago

Because statistics are manipulated to prove the point you are trying to make.


80% of all statistics are made up.
Rating: 4 Votes
23 months ago

+1, or even +1,000,000.

Not to mention if you're going to talk about Apple's "music/app store and accessory revenue," then you would have to include other companies' as well. And something tells me Sony will win this argument.


Not sure if you understand what they are comparing here. iTunes sales versus total phone sales of other companies. If we were to include other companies' music and app store as well, then we would have to add in Apple's phone sales to continue to equal the comparison.
Rating: 4 Votes

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