iTunes and Apple App store not profitable, iSlate may change that

The tech world has long had its suspicions that Apples digital businesses, iTunes and the App store, aren’t the money spinning business boomers they might first appear. The consensus from analysts has always been that flogging apps and music online has, for Apple, always been more of a kind of lure towards the company’s hardware than standalone businesses in their own right.

Want to be able to buy and organise music in a streamline way? iTunes will do that for you, but you’ll need an iPod. Want access to thousands of amazing apps? You’d better buy and iPhone.

Now Apple has confirmed this as true. In a meeting to announce Apple’s first quarter financial results, CFO Peter Oppenheimer said of the services: “Regarding the App Store and the iTunes Store, we’re running those a bit over break-even, and that hasn’t changed, We’re very excited to be providing our developers with just a fabulous opportunity, and we think that’s helping us a lot with the iPhone and the iPod touch platforms."

New ‘MusicDNA’ format may save the legal download market
Apple iSlate rumour round-up
Apple iPhone 4.0 rumour round-up

So these business arms are more marketing ploy than money machines, but will that change when the rumoured tablet lands? Maybe. The word is that the tablet will be geared up to make the absolute most of Apple’s digital dispensaries, and if enough people pick one up then surely business will boom.

Tantalisingly, Apple COO Tim Cook fielded questions regarding the tablet from shareholders with the line: "I wouldn’t want to take away your joy and surprise on Wednesday when you see our latest creations."

Hang on: ‘Creations’? In the plural? What else has Apple got up it’s sleeve? It’s either the rumoured iPhone 4.0, or something nobody’s yet guessed. We’ll keep you posted.

Link: Via The Register

The tech world has long had its suspicions that Apples digital businesses, iTunes and the App store, aren’t the money spinning business boomers they might first appear. The consensus from analysts has always been that flogging apps and music online has, for Apple, always been more of a kind of lure towards the company’s hardware than standalone businesses in their own right.

Want to be able to buy and organise music in a streamline way? iTunes will do that for you, but you’ll need an iPod. Want access to thousands of amazing apps? You’d better buy and iPhone.

Now Apple has confirmed this as true. In a meeting to announce Apple’s first quarter financial results, CFO Peter Oppenheimer said of the services: “Regarding the App Store and the iTunes Store, we’re running those a bit over break-even, and that hasn’t changed, We’re very excited to be providing our developers with just a fabulous opportunity, and we think that’s helping us a lot with the iPhone and the iPod touch platforms."

New ‘MusicDNA’ format may save the legal download market
Apple iSlate rumour round-up
Apple iPhone 4.0 rumour round-up

So these business arms are more marketing ploy than money machines, but will that change when the rumoured tablet lands? Maybe. The word is that the tablet will be geared up to make the absolute most of Apple’s digital dispensaries, and if enough people pick one up then surely business will boom.

Tantalisingly, Apple COO Tim Cook fielded questions regarding the tablet from shareholders with the line: "I wouldn’t want to take away your joy and surprise on Wednesday when you see our latest creations."

Hang on: ‘Creations’? In the plural? What else has Apple got up it’s sleeve? It’s either the rumoured iPhone 4.0, or something nobody’s yet guessed. We’ll keep you posted.

Link: Via The Register

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