Financial analysis firm Asymco recently released data on sales of Apple’s iTunes, Software, and services for the first quarter of 2014. You may recall in the most recent quarterly earnings call, CEO Tim Cook and CFO Peter Oppenheimer announced that the company posted revenue of $57.6 billion in 1Q14. Asymco used official information on hand to make some comparisons and found that Apple’s App Store is growing exponentially and the company’s app and service revenue pushed the company to a record-breaking quarter.
According to Asmyco, growth in net sales from the iTunes Store, AppleCare, and licensing contributed to the increase in net sales from the same time a year ago. The iTunes Store, which includes the App Store, the Mac App Store, and the iBooks Store generated $2.4 billion in net sales. The increase was driven by an increase in revenue from apps sales and a continued growth in iOS devices.
Apple’s iTunes/Software/Services portion of business generates $7 billion per quarter, or approximately $23.4 billion per year with an average year-over-year growth of 34 percent.
Based on Asmyco’s graph of Top line growth for third party content, in 2011, both music and apps were comparable for generated revenue. By 2013, apps, including iOS and Mac, increased significantly to become the largest revenue source, while music dropped significantly.
In just one year, the Mac and iOS App Stores increased in revenue by 105 percent while iTunes music dropped by 14 percent.
According to Asymco’s research, “The iTunes ‘empire’ of content and services would rank as number 130 in Fortune 500 ranking of companies (slightly below Alcoa and above Eli Lilly.”
Keep in mind that this estimate is based only on software, services, and content. One portion of Apple’s company is profitable enough to make it on the Fortune 500 list.