“Piper Jaffray notes that contrary to recent reports suggesting sales on iTunes are declining rapidly, their analysis of Apple company data regarding iTunes sales shows strong growth y/y,” Notable Calls reports.

“In light of recent media reports of slowing iTunes sales, they analyzed music sales data and saw strong y/y growth in 2005 and 2006. Specifically, the firm compared total sales between Jan. and Sept. of ’05 and ’06 and saw 78% growth during that period. From Jan. to Sept. in 2005 Apple sold 10.4m songs/week and in 2006 that number was up 78% to 18.5m songs/week,” Notable Calls reports.

Notable Calls reports, “While Apple does not release the financial details of the iTunes Store, the company has indicated that they run the store ‘above break-even.’ The iTunes Store, therefore, is a supplement to the iPod as Apple’s vehicle to monetize the free iTunes software. The integration of iPod with the iTunes software along with some profitability from the iTunes Store represent the three ingredients of Apple’s digital music ecosystem.”

Full article here.

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