Feeds

Apple's iTunes 'n' App Store rakes in half the mazuma of Google's ENTIRE core business

And it's growing faster, as well

Maximizing your infrastructure through virtualization

Here's your fun stat for today: Apple's iTunes, Software, and Services group has gross revenues of about half that of Google's entire core business – excluding Motorola and "Other" – and those revenues are rising faster than Google's.

Apple's iTunes Group's gross revenues compared with those of Google's core business

In diversity (of product categories, at least), there is strength (click to enlarge)

This li'l tidbit comes to us courtesy of Horace Dediu's Asymco, whose analysis also points out that if the iTunes group was its own separate company, its 2013 revenues of $23.5bn would rank it as number 130 on the Fortune 500.

That $23.5bn, by the way, represents a year-on-year growth of 34 per cent. It appears that at least one of Apple's divisions is answering in the affirmative to the analyst who asked Tim Cook during Apple's recent financial report conference call, "Are you still a growth company?"

As is usually true in such analyses, however, caveats abound. Note, for example, that Dediu is summing up gross revenues, and thus is including the 70 per cent of App Store revenue that Apple shells out to the app developers. Seems fair – WalMart's gross revenues include what it pays Kraft for Velveeta, after all.

Sharp-eyed Reg readers who check out Deidu's other charts will notice that when he compares Apple reported revenues to gross revenues, the App Store's gross numbers are larger than the reported figures, but the same isn't true for music, books, and video. No hanky panky: that's just because Apple reports only its slice of the App Store take, but all of its music, books, and video revenues. Go figure.

Anyway you slice it, though, a lot of cash is sluicing through Apple's software and services arm – a success that was far from certain when the iTunes Music Store was launched in the US in June 2003 and then in Europe in June 2004.

Here at The Reg, for example, opinions of the then-music-only and DRM-hobbled service were divided. One of our worthies called it "a great service" and another dismissed it as a "dismal little online music shop."

Soon thereafter, however, it became clear that Apple had a hit on its hands. "When Apple launched its online music store in the US on 28 April 2003," the BBC wrote on the store's first anniversary, "few could have predicted the impact it would have.

In late 2003, Time magazine named it the "Coolest Invention of 2003", citing "the transparent ease of use that is the hallmark of Apple's entire product line." Bloggers also were generally supportive, with Jim Heid effusing, "The iTunes Music Store makes buying music easier than stealing it," and Veerle Pieters declaring, "iTunes kicks Napster's ass!"

Remember Napster?

Of course, impressive gross revenues don't necessarily equate to impressive profits. In fact, in January 2010, Apple CFO Peter Oppenheimer went as far as to say, "Regarding the App Store and the iTunes Store, we're running those a bit over break-even" – although he provided no precise figures.

But as we've argued many times before, keeping developers happy is critical in building and maintaining a platform ecosystem, and we can only assume that the $15bn that Apple has so far paid developers from App Store sales alone has engendered more than a smidgen of happiness. ®

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.