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Apple: iPhone App and iTunes stores don't make money
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finlay666
Spends far too much time on here
Joined: Thu Apr 23, 2009 9:40 pm
Posts: 4876
Location: Newcastle
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Actually Google do it cheaper, they don't even peer review AFAIK. Peer review can be a very powerful tool, it's more used for rating the content on violent/sex content/language on XNA though _________________TwitterCharlie Brooker: Macs are glorified Fisher-Price activity centres for adults; computers for scaredy cats too nervous to learn how proper computers work; computers for people who earnestly believe in feng shui.
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| Tue Jan 26, 2010 5:52 pm |
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bobbdobbs
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 7:10 pm
Posts: 5490
Location: just behind you!
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sorry the $153 million is the increase in net sales and comes from the 10-q from Apple.  | | | | big_D wrote: Net sales != Net profit. (From Investopedia.com) From that $153 million, you have to take away salaries and benefits for the people working for that division, server costs, bandwidth costs storage costs, conversion costs, credit card fees, rights holder's fees, legal fees, support costs etc. So, you can take around 70% of that $153M for the rights holders, that leave $46M to pay for the running of the stores. Throw in the costs for the tera or peta bytes of downloads over the quarter, that will take a healthy chunk out of that $46M, before you get to investing in people and servers... You can still make a net loss on $153 million net sales...  | | | | |
total 1.164 billion net sales for 3 months.. now thats a lot of wonga. _________________Finally joined Flickr
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| Tue Jan 26, 2010 7:46 pm |
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ChurchCat
Doesn't have much of a life
Joined: Sat Apr 25, 2009 7:57 am
Posts: 1652
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Oh, I did not realise that. In fact I thought that MS had a very restrictive practice on their version of the App Store. Certainly the Zune Market Place was at one time by invitation only and I was under the impression that only MS approved apps. could be found there. Perhaps I am out of date as I don't tend to follow the comings and goings of MS as closely as I do those of Apple.  _________________A Mac user 
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| Tue Jan 26, 2010 8:28 pm |
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timark_uk
Moderator
Joined: Thu Apr 23, 2009 6:11 pm
Posts: 12143
Location: Belfast
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It was actually 3.38 billion dollars "A doubling of iPhone sales helped Apple on Monday post record-high quarterly net profit of 3.38 billion dollars in the fiscal quarter ending December 26." Source. Despite there being a worldwide recession. Clearly, it's not just the "fanboys" that's buying Apple products. The company is certainly doing something right. Mark
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| Tue Jan 26, 2010 8:30 pm |
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finlay666
Spends far too much time on here
Joined: Thu Apr 23, 2009 9:40 pm
Posts: 4876
Location: Newcastle
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The Zune one is, but it's invitation only, just like XBLA games are invite only. XNA games are more like the Android marketplace along with the WM Marketplace and the App store as anyone can apply to submit apps/games to it. It shows a lot in terms of the final product, the public app stores can be a bit hit and miss in terms of quality, which is where peer rating comes in. _________________TwitterCharlie Brooker: Macs are glorified Fisher-Price activity centres for adults; computers for scaredy cats too nervous to learn how proper computers work; computers for people who earnestly believe in feng shui.
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| Tue Jan 26, 2010 8:42 pm |
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ChurchCat
Doesn't have much of a life
Joined: Sat Apr 25, 2009 7:57 am
Posts: 1652
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Unless there are more fanboys than there used to be.  _________________A Mac user
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| Tue Jan 26, 2010 8:46 pm |
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timark_uk
Moderator
Joined: Thu Apr 23, 2009 6:11 pm
Posts: 12143
Location: Belfast
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You don't have to be a "fanboy" of a company to like a certain product that it produces. I see your point, but I don't think it's the case. (8+) Mark
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| Tue Jan 26, 2010 8:49 pm |
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big_D
What's a life?
Joined: Thu Apr 23, 2009 8:25 pm
Posts: 10691
Location: Bramsche
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That is still an increase in sales. No mention of how much profit they made on those sales. But sales aren't profit. As I said, IBM did something like $6 billion in sales back in the 90s and still made a loss of $2 billion on that. Without knowing what their net margin or net income was, you can't get much from those figures, other than they sold a lot of apps and tunes. We have their word for it, that they are only just above break-even, but whether that is $1, $1 million or $10 million is just a guess...
_________________
"Do you know what this is? Hmm? No, I can see you do not. You have that vacant look in your eyes, which says hold my head to your ear, you will hear the sea!" - Londo Molari
Executive Producer No Agenda Show 246
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| Tue Jan 26, 2010 9:01 pm |
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big_D
What's a life?
Joined: Thu Apr 23, 2009 8:25 pm
Posts: 10691
Location: Bramsche
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But you are looking at a different figure... They made $3.38 billion profit on the whole business. But we are discussing iTunes Store / App Store sales. AFAIK, they haven't released a profit figure for that division. The figure you mention covers hardware sales, so we still aren't any clearer on what profits they made from the Music/App Stores...
_________________
"Do you know what this is? Hmm? No, I can see you do not. You have that vacant look in your eyes, which says hold my head to your ear, you will hear the sea!" - Londo Molari
Executive Producer No Agenda Show 246
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| Tue Jan 26, 2010 9:07 pm |
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