"Regarding the App Store and the iTunes Store, we're running those a bit over break-even, and that hasn't changed," Oppenheimer said. "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."

Does anyone else find that 'a bit over break-even' slightly hard to believe?

http://www.theregister.co.uk/2010/01/26/app_store/
Does anyone else find that 'a bit over break-even' slightly hard to believe?

I understand the arguments around it (I even find it hard to believe many people buy songs from them at the prices ) but it just seems a lot of effort for not much if you believe them, especially considering all the toing and froing with the record industry over DRM and profit

Net sales of other music related products and services increased $153 million or 15% during the first quarter of 2010
compared to the first quarter of 2009, due primarily to increased net sales from the iTunes Store, which experienced
double-digit growth in each of the Company’s geographic segments. The Company believes this continued growth is the
result of heightened consumer interest in downloading third-party digital content and applications, continued growth in its
customer base of iPod and iPhone customers, the expansion of third-party audio and video content available for sale and
rent via the iTunes Store, and the continued interest in and growth of the iTunes App Store. The Company continues to
expand its iTunes content and applications offerings around the world.

phew $153 million net profit is only a bit over break even
I wish I was only breaking even at that rate

Yes, see that's the sort of thing that makes me think we aren't getting the full story somehow, but I'm no expert...

I suspect they're worried that the music industry will want even more money

phew $153 million net profit is only a bit over break even
I wish I was only breaking even at that rate

phew $153 million net profit is only a bit over break even
I wish I was only breaking even at that rate

What Does Net Sales Mean?
The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed. The sales number reported on a company's financial statements is a net sales number, reflecting these deductions.

What Does Net Income - NI Mean?
1. A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. This number is found on a company's income statement and is an important measure of how profitable the company is over a period of time. The measure is also used to calculate earnings per share.

Often referred to as "the bottom line" since net income is listed at the bottom of the income statement. In the U.K., net income is known as "profit attributable to shareholders".

IMHO youve hit the nail on the head. if they announce that they are raking it hand over fist then the content providers will demand a bigger cut. So it is in there interest to downplay the revenue they are getting, but I could be totally wrong.

Apple is a company (as all successful companies are) dedicated to ensuring your money becomes its own money. It does this by persuading you that its products are good enough for you to part with your money (which they are very, very, very successful at doing.) They have persuaded me to upgrade to every iteration of the iPhone so far .
Though to be fair it only took about a nano second for me to go "i want I want gimme gimme gimme"

It does sound like that figure includes hardware, though.

10k 2009
Net sales of other music-related products and services increased $696 million or 21% during 2009
compared to 2008. The increase was due predominantly to increased net sales of third-party digital
content and applications from the iTunes Store, which experienced double-digit growth in each of the
Company’s geographic segments during 2009 compared to the same period in 2008.

10k 2008
Net sales of other music related and services increased $844 million or 34% during 2008 compared to 2007, due primarily to significantly increased net sales from the iTunes store…The Company believes this success is the result of heightened consumer interest in downloading third party digital content..via the iTunes store and the launch of the iTunes App store

On the App store front. Did I not read that Apple broke ground in offering such a low cost way to get developers product online? The point being that administration, credit card fees, hosting, code checking, payment overheads etc were absorbed by Apple even for the free applications.

They dont check code AFAIK,

What they do is check it to see if it performs as advertised. It it has bugs or does not work then it is rejected. This is apparently the main reason for an application being rejected by the App. Store approval process. Someone has to pay for that.

MS do it on as cheaply as possible.