“Apple makes most of its money from iPhones and iPads; however, iTunes/Software/Services is the company´s fastest growing business,” Andrés Cardenal writes for The Motley Fool. “This segment is not only a key competitive asset for the company but it´s also becoming a massive business with serious long term potential.”
“The iTunes/Software/Services business generated $3.99 billion in revenue for Apple in the last quarter,” Cardenal writes. “That is a relatively small fraction of total sales for a company with more than $35.3 billion in revenues for the quarter, but it’s a huge business on a stand-alone basis. For that matter, iTunes is already bigger than most media and entertainment companies.”
Cardenal writes, “More importantly, the segment is growing at 25% annually and becoming an increasingly bigger part of the equation. iTunes billings translated to quarterly revenue of $2.4 billion, up 29% from the year ago quarter… Wall Street analysts usually think of this segment as a competitive advantage that differentiates Apple from its competitors and keeps users engaged to its much beloved ecosystem… but maybe it’s time to give more consideration to the financial impact this business could have in the middle and long term.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]