itunes_store_account_growth_jun13During Apple's Worldwide Developer Conference keynote, CEO Tim Cook announced that the iTunes and App Store have 575 million store accounts and noted that Apple believes it has more accounts with credit cards than any other company on the Internet.

Asymco's Horace Dediu yesterday used the new figure to take a look at the value of an Apple user to the company. By plotting Apple's previous milestones all the way back to 2009, Dediu found that Apple is adding about 500,000 new iTunes accounts a day and that the company is on pace to add another 100 million accounts by the end of the year.

Dediu also found that iTunes revenue per account is approximately $40 per year, about half the amount seen in 2009.

One would expect such a decline as an user base expands and this approximate 50% decline in revenues per account seems reasonable for a six-fold base increase. In absolute terms the graph shows that an iTunes account generates about $3.2/month in transactions. Put another way, during the last year, an average of $40/yr of economic value is generated by every iTunes account.

The report goes on to extend the analysis to company-wide revenue and enterprise value per account holder as proxies for determine how much a single customer is worth to the company and how much that customer is valued by stockholders.

In early June, Morgan Stanley analyst Katy Huberty noted that Apple's large number of iTunes/App Store accounts offer significant potential for growth in services. And at his D11 interview, Cook touted iMessage, iTunes Store and FaceTime as examples of how Apple's services are tying together Apple's ecosystem, with Cook emphasizing that the "magic" happens at the interaction of hardware, software, and services.

Top Rated Comments

dejo Avatar
140 months ago
As for their claim to the most credit cards, I find this hard to believe. Paypal has been around far longer than iTunes. But I could be wrong.

I don't believe a Paypal account requires a credit card attached.
Score: 4 Votes (Like | Disagree)
.Asa Avatar
140 months ago
I spend a lot more than $40/yr on iTunes ;)
Score: 3 Votes (Like | Disagree)
dejo Avatar
140 months ago
Actually meant Ebay. If you are a seller on Ebay, you are required. I would think Ebay has many sellers?
I signed up for eBay many years ago and didn't need to attach a credit card, so this may be a new policy. And I would be surprised if eBay had that many sellers. But (now it's my turn) I could be wrong.

Also said I could be wrong.
Yeah, sorry if my comment came across as an attack. It was not intended that way. My apologies.
Score: 2 Votes (Like | Disagree)
firedept Avatar
140 months ago
I have 3 accounts, all of which I would like to merge. So I personally believe Apple's numbers are skewed. Do not get me wrong, Apple still has lots of accounts. Also wonder how many are dormant. As for their claim to the most credit cards, I find this hard to believe. Paypal has been around far longer than iTunes. But I could be wrong.
Score: 2 Votes (Like | Disagree)
troop231 Avatar
140 months ago
I bet a Russian would love to have 500,000 new 'accounts' per day :p
Score: 2 Votes (Like | Disagree)
CooKieMoNs7eR Avatar
140 months ago
That's insane #
Score: 1 Votes (Like | Disagree)

Popular Stories

Apple Logo Spotlight

Source: Apple to Announce New Products This Week

Sunday March 3, 2024 11:38 am PST by
Apple plans to announce new products with press releases on its website this week, a proven source familiar with the matter told MacRumors. While the products that Apple plans to announce have not been disclosed, there are rumors about new iPads, Macs, and accessories. It is unclear exactly what will be announced this week. Bloomberg's Mark Gurman today reiterated that Apple is planning new...
Apple Maps vs Google Maps Feature

Apple Maps vs. Google Maps: Which Is Better?

Friday March 1, 2024 7:10 am PST by
Apple Maps has been providing navigational guidance to Apple users for almost 13 and a half years now, and much has changed about the app in that time. However, according to data from Canalys, the overwhelming majority of iPhones in the U.S. still have Google Maps downloaded as an alternative to Apple Maps, which comes preinstalled on all iPhones. We want to hear from MacRumors readers. Which do...
apple tv plus banner

Apple TV+ Gains Over 50 Movies for a Limited Time

Friday March 1, 2024 6:29 am PST by
Apple TV+ today gained over 50 movies, adding to its back catalog of content for a limited time. The collection includes a large number of popular and classic titles. Subscribers can access the movies in a "Great Movies on Apple TV+" section in the Apple TV app. Some titles are also available in 3D. Movies in the collection include: 21 Jump Street 300 American Sniper Argo ...
iPad Air 12

Gurman: No Apple Event Planned for Upcoming iPads and Macs

Sunday March 3, 2024 5:09 am PST by
Apple does not plan to hold a traditional event to unveil new iPads and Macs, according to Bloomberg's Mark Gurman. Instead, he said Apple plans to announce the products on its website with a "series of online videos and marketing campaigns." If this plan is accurate, we can expect the new products to be announced with press releases on the Apple Newsroom website. Gurman expects Apple to...
airpods pro 2 pink

Apple Releases New Beta Firmware for AirPods Pro 2

Thursday February 29, 2024 11:41 am PST by
Apple today introduced a new beta firmware update for the AirPods Pro 2, both the USB-C and Lightning versions. The new firmware is version 6E188, up from the prior 6B34 firmware released in December. Apple does not often provide details or notes on what features might be included in the refreshed firmware, so it is unclear what's new. Note that this software is limited to developers at the...