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Apple makes more from iTunes and accessories than rivals do from selling phones - report
- — 14 February, 2013 13:59
Apple makes more from its iTunes and accessories than its rivals make from selling mobile phones, a new report has revealed.
In January, changes made to the presentation and categorisation of Apple's revenue report revealed that the company is making more from its iTunes, software and services than it is from iPod sales, making it Apple's fourth largest business.
In a new report, Asymco analyst Horace Dediu has highlighted that Apple's iTunes and accessories business is bringing in more revenue than every other phone vendor except Samsung is making from its mobile phone sales.
Dediu's chart, as shown below, illustrates that Apple's iTunes and accessories business overtook Nokia's mobile phone revenues in the fourth quarter of 2012, and also brings in more revenue for Apple than Motorola, Sony, LG, RIM and HTC's mobile phone sales.
Apple announced its best ever financial results during its earnings call for the first fiscal quarter of 2013 in January. The company posted a record revenue of $54.5bn (£34.8bn) for the quarter.
The company sold 4.87 million iPhones in the quarter, compared to 37 million in the same quarter a year ago. Apple also sold a record 22.9 million iPads during the quarter compared to 15.4 million in the same quarter in 2012. Analyst projections ranged from 16.9 million to 32 million.
Fewer Macs were sold: 4.1 million compared to 5.2 million last year. Should Mac sales continue to decline, Apple's iTunes, software and services revenues could soon overtake Mac revenues to become the Apple's third largest money maker.