““Most Apple commentators focus on Apple’s hardware business, which is unsurprising given its size,” writes Societe Generale’s Andy Perkins in a note to clients Wednesday,” Philip Elmer-DeWitt reports for Fortune.
However, tucked away in the notes and management commentary are some intriguing details about app revenues. Using these details we calculate that apps are one of the few areas at Apple showing very good sales growth (100%+ in 2013) and are an increasingly important source of operating profits (8% of the total in 2013). We think this area is poorly understood but could be a key growth driver for Apple’s future profits. – Andy Perkins
Read more, and see the charts, in the full article here.