Apple VP: iPod makes money, not iTunes Store

Murlyn · Murlyn #1 (**permalink**)

10-16-2003, 11:42 PM

Source: MacMinute.com

Apple VP: iPod makes money, not iTunes Store
October 16, 2003 - 23:03 EDT Apple said it doesn't expect to make great profits from selling songs on its iTunes Music Store. Instead, the company is counting on the store to boost sales of the iPod, which has much higher margins. "The iPod makes money. The iTunes Music Store doesn't," Apple Senior Vice President Phil Schiller told CNET News.com after the launch of the Windows version today. Schiller said that the store is close to profitability but is still losing money, and that Apple doesn't see the online music business as having much long-term profit potential. "Just trying to have a business around downloadable music would be tough," he said.

My Comments: And here I thought they were making a decent amount from this thing.. let's see.. is this really how it works out? 94 cents for the music companies and 5 cents for Apple? I would be curious what the breakdown is..

MacAddikt · MacAddikt #2 (**permalink**)

10-17-2003, 12:15 AM

well with over 10 million songs sold to only 5% of the market in less than a yr, i would think that its not just chump change coming their way

Murlyn #1 (permalink)
Member Since: Jun 11, 2003 Location: Mount Vernon, WA Posts: 4,905 Mac Specs: MacBook Pro 2.6 GHz Core 2 Duo 4GB RAM OS 10.5.2	10-16-2003, 11:42 PM Source: MacMinute.com Apple VP: iPod makes money, not iTunes Store October 16, 2003 - 23:03 EDT Apple said it doesn't expect to make great profits from selling songs on its iTunes Music Store. Instead, the company is counting on the store to boost sales of the iPod, which has much higher margins. "The iPod makes money. The iTunes Music Store doesn't," Apple Senior Vice President Phil Schiller told CNET News.com after the launch of the Windows version today. Schiller said that the store is close to profitability but is still losing money, and that Apple doesn't see the online music business as having much long-term profit potential. "Just trying to have a business around downloadable music would be tough," he said. My Comments: And here I thought they were making a decent amount from this thing.. let's see.. is this really how it works out? 94 cents for the music companies and 5 cents for Apple? I would be curious what the breakdown is.. ---> Join the Mac-Forums Folding team: use 37954 as your team number. View Mac-Forums Folding team statistics (More Info) Don't forget to use the User Reputation System
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Apple VP: iPod makes money, not iTunes Store

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MacAddikt #2 (permalink)
Member Since: Dec 30, 2002 Location: Sunny So Cal Posts: 2,118 Mac Specs: G5•2x1.8•1.5•320•8x+/-	10-17-2003, 12:15 AM well with over 10 million songs sold to only 5% of the market in less than a yr, i would think that its not just chump change coming their way
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