How Much Does Apple Make from Music on iTunes? Not Much, Apparently.

Whenever Apple releases financial information, they never break out how much they make from selling music through iTunes.  But because they’re the world’s biggest music retailer, there’s a lot of curiosity around what kind of cash they’re making from music sales.

The answer seems to be “not much.”

Apple is a hardware company.  Ventures like iTunes exist only to push and compliment the sales of things like iPhones, iPads, iPods and Macs.  A company called Asymco made some educated guesses on how much the various products sold in the iTunes store return to Apple.

The margin on music?  One per cent.  Maybe.  The company is certainly not geting rich selling music.  It’s all about moving as much high-margin hardware as possible.

Read the whole story at 9 to 5 Mac.

Alan Cross

is an internationally known broadcaster, interviewer, writer, consultant, blogger and speaker. In his 30+ years in the music business, Alan has interviewed the biggest names in rock, from David Bowie and U2 to Pearl Jam and the Foo Fighters. He’s also known as a musicologist and documentarian through programs like The Ongoing History of New Music.

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