[B] [URL="http://digitalmusicnews.com/stories/012510apple"]Guess What? Apple Still 'Break-Even' on iTunes Store...[/URL] [/B]

                                                                                                                                                     Apple is still breaking even on the iTunes Store - and the App Store for that matter - according to recent disclosures by Apple CFO Peter Oppenheimer.  "Regarding the App Store and the iTunes Store, we're running those a bit over break-even, and that hasn't changed," Oppenheimer stated during a recent quarterly financial call.  The break-even status remains despite paid download volumes approaching 2.5 billion songs annually. 

The comments support a longstanding Apple model that places hardware above content. At present, iTunes Store downloads are at best a bait for iPods and iPhones, and financially a sideshow.
Actually, the Oppenheimer comments were themselves a sideshow to much bigger developments. Apple posted its best financial quarter yet, thanks to relatively robust sales of iPhones and Macs. The iPod continued to slide, specifically 7.5 percent to 21 million units, though the iPod touch boomed 55 percent. Earnings jumped to $3.4 billion, up from nearly $2.3 billion during the year-ago period. Revenues rose to $15.7 billion from $11.9 billion, and annualized, Apple is now producing more than $50 billion in sales.

^interesting. i would have thought they were making a killing with digital downloads.

Re: iTunes is a break-even for apple

is this saying that they are spending so much on hardware r&d and other things that the apple store isnt making THAT much money?

Re: iTunes is a break-even for apple

Do you believe everything you read? :p

Re: iTunes is a break-even for apple

yes. if it's printed, it's the 100% truth. no exceptions.

Re: iTunes is a break-even for apple

i was always under the impression that they made bank from it as well, so many ppl use that shit! the windows version is still even more useless, so i disabled it on my comp. my problem is finding a decent alternative for uploading mp3's on my iPod without having to use iTunes. :what

these are just my preferences, but i think iTunes is a garbage application. iTunes, as well as Windows Media Player both spy on you! they send back packets on what you're listening to, so i don't even fuck with either anymore. argh.

Re: iTunes is a break-even for apple

Use winamp like it do. it really whips the llamas ass.

Re: iTunes is a break-even for apple

If Itunes would get with the times, and begin uploading higher bitrate mp3's at the same prices. They would definitely sell more. As I know I've bought plenty of things I could have gotten from the itunes store that I got elsewhere with better bitrates on the files.

Jobs and crew aren't going above and beyond with itunes like they planned at the beginning of it.

Re: iTunes is a break-even for apple

[QUOTE=res0nat0r;831875]Use winamp like it do. it really whips the llamas ass.[/QUOTE]

hell yeah bud. that exactly what i use now :D it works so swift! wont ever go back.

Re: iTunes is a break-even for apple

I always buy the CD then rip it to my iPod through iTunes. That's the only time i use it. I don't know why but iTunes always takes fucking ages to open on my PC. To listen to music on my PC I downloaded traktor and use that. I recon it sounds better than iTunes Quicktime etc