iTunes store revenues slip

By | Published on Thursday 26 July 2012


The iTunes store saw its revenues drop by $100 million in Apple’s most recent financial quarter to $1.8 billion, despite the platform opening up in a number of new Asian markets for the first time, perhaps showing that the uber-download store has finally peaked as newer rivals and subscription-based content services gain momentum.

Though, it is worth noting, iTunes revenue for the quarter was still $400 million up year on year, so perhaps the drop quarter to quarter can be explained by the sort of seasonal fluctuations in sales that all retailers experience, or perhaps it’s just a temporary wobble. It will certainly take a few more sets of quarterly figures before any real conclusions can be drawn. Plus we don’t currently know where the slide occurred – ie was it in music, apps or other content.

The iTunes wobble occurred in the middle of yet another rosey quarter for Apple, in which Mac, iPhone, iPod and Apple TV sales all went up, by 2%, 28%, 84% and 170% respectively. Only iPod sales slipped, though that’s hardly surprising. Overall Apple reported an $8.8 billion profit on revenue of $35 billion, which pretty darn good, though not quite as good as expected, resulting in a lukewarm response from City types and a 4.3% slip in the firm’s share price.