iTunes + Apple accessories now make more money than major phone manufactures

Asymco has worked out that Apple is making more from their iTunes and accessory devisions than major phone manufacturers are making overall. In a blog post, Asymco speculated that Apple made around $5.5 billion from their iTunes and accessory ranges, while other manufactures — including RIM (now BlackBerry), Sony, LG, Motorola (now owned by Google), Nokia and HTC — make significantly less.

In the chart below, you can see the difference in revenues; 

Ex-analyst, Horace Dediu, went on to say that by the end of 2013, iTunes + Accessories will out perform the Mac division:

iTunes+Accessories combined is a bigger business in terms of revenues than any of the other phone vendors except Samsung. iTunes is now Apple’s fourth largest business, having overtaken the iPod in revenues two years ago. iTunes growth relative to the Mac means that it could become the third largest business during this year.

Dediu also notes that iTunes and Accessories is now worth more than both the Xbox and Windows Phone divisions at Microsoft.

In other Apple financial news, as we previously reported, Morgan Stanley analyst Scott Devitt predicts that Apple is receiving around $1 billion per year from Google for making them the default search engine in iOS and OS X; The deal is up from $100 million thee years ago. 

Apple's currently sits at $470 (down 2.15%) on the stock market, with a market cap of $441.16 billion. 

Source: Asymco  | Via MacRumors

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28 Comments

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onionjuice said,
Lol I love how Samsung is not a major phone manufacturer.

The article states that Samsung is excluded since they make more than iTunes.

iTunes+Accessories combined is a bigger business in terms of revenues than any of the other phone vendors except Samsung.

Manish said,
How does a feature that you don't have to use bother you?
I have a samsung home theater in a box system for my man-cave setup. I have to step over wired and wireless iPod sources to get to HDMI. It's annoying

Other than that, I'm sure there was a 30+ premium on the system because it had that feature.

Manish said,
I should take that as a joke right?

Absolutely not.

Stepping over completely useless inputs + increased cost (licensing) to support the wired dock, the actual wired dock and the wireless doc

You asked, I answered. There are costs.

neufuse said,
we are comparing iTunes to phone mfgs? shouldn't we be comparing iTunes to hollywood studios / music sales?

Agreed that it's a pretty strange comparison.
It would probably be more meaningful to compare accessory sales between Apple and Samsung. Except for maybe Amazon, there's not really any competitor to iTunes.

Astra.Xtreme said,

Agreed that it's a pretty strange comparison.
It would probably be more meaningful to compare accessory sales between Apple and Samsung. Except for maybe Amazon, there's not really any competitor to iTunes.

It seems like some analyst wanted to make Apple look larger then life so lets combine what we have to, so we can say hey look how big we are! That's like saying A company that sells furniture and paper products had more revenue then just a standalone paper product company.... it makes no sense...

Not surprised. Apple stuff has always been more expensive. Their lighting connection adapter costs $30 while others make them for way low of a price. Depends on who you buy from but I know several people who will only buy form Apple.

There are also a lot more accessories available for the iPhone/iPod than there is other devices.

omgben said,
I tell that to my boss the next time he asks me to generate a revenue report.
If your revenue report doesn't have a CoS etc. to generate a Profit column I'll be amazed.

.Neo said,
Denial kicking in again I see.
It's not denial. Its sound financial reasoning. Their profits and profit margins are all that matter.

Outside of that, you are comparing apples to oranges for markets. It's hard to compare apple to those other hardware manu's in a meaningful way. You'd have to find out the margins generated by Apple's *hardware* only. Then compare it to the the margis of those manu's hardware sales. It's just silly.

Hardware manufacturers have very small profit margins. Taking 30% to host an app to be downloaded and maybe offer some billing support is no doubt going to make a TON of money. This article is comparing apples to oranges.

This is about revenue, not profits. Apple has said before that they run iTunes at close to break even, so most of that revenue is going back into infrastructure, hosting, bandwidth, staff, etc.

This is just a comparison of the 'size' of the business in revenue, which I agree doesn't really mean that much.

Oh right, it is revenue. Anyway, this is more-or-less a "slow news day" article. It's the typical "Apple vs. The World" article aimed to stir the pot.