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
105 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
105 months ago
I spend a lot more than $40/yr on iTunes ;)
Score: 3 Votes (Like | Disagree)
dejo Avatar
105 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
105 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
105 months ago
I bet a Russian would love to have 500,000 new 'accounts' per day :p
Score: 2 Votes (Like | Disagree)
CooKieMoNs7eR Avatar
105 months ago
That's insane #
Score: 1 Votes (Like | Disagree)

Top Stories

YouTube Picture in Picture Feature

YouTube Says iOS Picture-in-Picture Coming to All US Users

Friday June 18, 2021 9:41 am PDT by
After a long wait, YouTube for iOS is officially gaining picture-in-picture support, allowing all users, non-premium and premium subscribers, to close the YouTube app and continue watching their video in a small pop-up window. In a statement to MacRumors, YouTube says that picture-in-picture is currently rolling out to all premium subscribers on iOS and that a larger rollout to all US iOS...
Top Stories 63 Feature

Top Stories: Beats Studio Buds Announced, Apple Watch Series 7 Rumors, and More

Saturday June 19, 2021 6:00 am PDT by
The Apple news cycle started to move beyond WWDC this week, but that doesn't mean there still wasn't a lot to talk about, led by the official debut of the much-leaked Beats Studio Buds that might give us a hint of what to expect for the second-generation AirPods Pro. With no hardware announcements at WWDC, we also took a look at when we might finally see the long-rumored redesigned MacBook...
ios wifi settings

iOS Bug Causes Specific Network Name to Disable Wi-Fi on iPhones

Sunday June 20, 2021 4:15 am PDT by
A wireless network naming bug has been discovered in iOS that effectively disables an iPhone's ability to connect to Wi-Fi. Security researcher Carl Schou found that after joining a Wi-Fi network with the name "%p%s%s%s%s%n" his iPhone's Wi-Fi functionality was left "permanently disabled." Changing a hotspot's SSID did nothing to correct the problem, with even a reboot failing to make a...
maxresdefault

Video: 20 Annoyances Apple Fixed in iOS 15 and macOS Monterey

Friday June 18, 2021 11:36 am PDT by
With iOS 15 and macOS Monterey, Apple is adding several quality of life improvements, which are designed to address some of the complaints that people have had with these operating systems for years now. Subscribe to the MacRumors YouTube channel for more videos. In our latest YouTube video, we're highlighting some of our favorite "fix" features that address long-running problems in iOS and...
16 inch macbook pro m2 render

When Can We Expect the Redesigned MacBook Pros Now?

Wednesday June 16, 2021 7:11 am PDT by
With no sign of redesigned MacBook Pro models at this year's WWDC, when can customers expect the much-anticipated new models to launch? A number of reports, including investor notes from Morgan Stanley and Wedbush analysts, claimed that new MacBook Pro models would be coming during this year's WWDC. This did not happen, much to the disappointment of MacBook Pro fans, who have been...
space gray magic accessories trio

Apple Stops Selling Magic Accessories in Space Gray

Friday June 18, 2021 9:16 am PDT by
Apple this week stopped selling its Magic Keyboard with Numeric Keypad, Magic Mouse 2, and Magic Trackpad 2 accessories for the Mac in a Space Gray color, around three months after discontinuing the iMac Pro, which also came in Space Gray. Last month, Apple listed the Space Gray accessories as available while supplies last, and the company has now removed the product pages from its website...
m1 v intel thumb

Intel Processor Market Share May Fall to New Low Next Year Due to Apple Silicon

Friday June 18, 2021 2:06 am PDT by
Intel may see its market share fall to a new low next year, in large part thanks to Apple's decision to move away from using Intel processors in its Mac computers and instead use Apple silicon. Apple announced last year that it would embark on a two-year-long journey to transition all of its Mac computers, both desktops, and laptops, to use its own in-house processors. Apple is expected to...
3nm apple silicon feature

Apple Supplier TSMC Readies 3nm Chip Production for Second Half of 2022

Friday June 18, 2021 6:59 am PDT by
Apple supplier TSMC is preparing to produce 3nm chips in the second half of 2022, and in the coming months, the supplier will begin production of 4nm chips, according to a new report from DigiTimes. Apple had previously booked the initial capacity of TSMC's 4nm chip production for future Macs and more recently ordered TSMC to begin production of the A15 chip for the upcoming iPhone 13,...
2021 back t0 school

Apple Launches 2021 Back to School Promotion: Free AirPods With Eligible Mac or iPad Purchase

Thursday June 17, 2021 4:56 am PDT by
Apple today launched its seasonal back-to-school sale for the upcoming school year in the United States and Canada, offering students free AirPods alongside purchases of select Macs and iPad models. Similar to last year's promotion, this year's offer includes free AirPods alongside the purchase of a MacBook Air, MacBook Pro, the new 24-inch iMac, the Mac Pro, Mac mini, and the new M1-powered ...
applecare lower prices

Apple Lowers Prices of AppleCare+ Plans for M1 MacBook Air and MacBook Pro

Thursday June 17, 2021 7:33 am PDT by
Apple today lowered the prices of AppleCare+ plans for MacBook Air and 13-inch MacBook Pro models equipped with the M1 chip. Coverage offered by the plans, as well as accidental damage fees, appear to remain unchanged. In the United States, AppleCare+ for the MacBook Air now costs $199, down from $249. The new price applies to both M1 and Intel-based MacBook Air models, although Apple no...