Cool Gadgets, Gizmos, Games and Geek Stuff on Technabob
VISIT OUR OTHER SITES: THE AWESOMER | 95OCTANE

Technabob is reader-supported. When you buy through links on our site, we may earn an affiliate commission.
As an Amazon Associate I earn from qualifying purchases. Learn more.

iTunes Costs $1.3B to Operate Each Year (Estimated)

by Shane McGlaun
Advertisement

I would bet that many people out there have purchased music or apps from iTunes at some point. Even if you don’t use the iPhone, iTunes is still the most popular digital music store around. I know that Apple keeps a chunk of the money that sellers make when they offer apps and music on iTunes to cover costs but I really had no idea what those operating costs could be.

Apparently, it costs a ton of money to operate iTunes. We know that there are 15 billion songs downloaded on iTunes, 130 million books downloaded, and 14 billion apps downloaded along with $2.5 bill paid out to developers.

Along with that data, market intelligence firm Asymco took some other figures, worked the numbers, and came up with what it thinks iTunes costs to operate. The number is a whopping $1.3 billion each year. That works out to about $113 million monthly! That is a lot of money no matter how you slice it.

In working through their estimates, Asymco figured out the what Apple gets to keep after paying content owners (shown in the graph above), then assumed that they operate at break-even, since Apple has stated that they really make their money on the hardware business, and they have alluded to the iTunes store operating “a bit over break even” on several occasions.

It doesn’t seem like offering digital goods where you don’t have a physical store should cost that much.



SOG Snippet Multitool

SOG Snippet Multitool

The Tone and Style of Stranger Things

The Tone and Style of Stranger Things

Turning Candy Into Booze

Turning Candy Into Booze

Advertisement
Nissan Shuffles 2021 Altima Range and Offers Pricing Details

Nissan Shuffles 2021 Altima Range and Offers Pricing Details

Updated 2021 Honda Accord Gains Features and Sport SE Trim

Updated 2021 Honda Accord Gains Features and Sport SE Trim

Win a Loaded 2020 Tesla Model X Performance with Ludicrous Mode

Win a Loaded 2020 Tesla Model X Performance with Ludicrous Mode

Advertisement