Todd Allcock:
> All the articles in the trades I've read call the iTunes store a dud
> profit wise. Apple only claimed it was profitable in one quarterly report,
> IIRC, and has said little about it since.

You read the wrong trades. It is not the purpose of the iTunes store to
make a few pennies on every item sold. The purpose of the iTunes store
is to sell iPods/iPhones. By any reasonable measure -- absolute
numbers, market share, mind-share -- it has been an enormously
successful retail venture.

> It's possible it makes a pile of money and Apple says mum on the subject,
> but that seems unlikely- most companies like bragging about success.

Apple has not spared the ink when playing up this phenomenal success. A
press release dated April 9, 2007, is entitled "100 Million iPods Sold"
<http://www.apple.com/pr/library/2007/04/09ipod.html>. The brief
release mentions iTunes store six times. Four of those mentions are in
sentences that also contain the word "iPod."

Davoud

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