Average: 25 per unit sold

Posted: April 9, 2007 in Uncategorized
Apple announced they sold their 100 millionth iPod. In passing, Steve Jobs mentioned about 2.5 billion songs have been purchased from iTunes so far. That works out to an average of 25 songs sold per iPod sold. The record labels keep the lion’s share of each 99-cent song. After distribution costs, etc, Apple is left with maybe 10 cents per track sold, which translates to making only an additional two-and-a-half dollars per unit sold on average. That totally sucks, but…
Even back in 2003, Jobs knew he would never make money on iTunes…but the profit they make on the players is doing Apple just fine.
Makes one wonder why Microsoft launched the Zune Marketplace…it’s so much money to build, maintain, the legal headaches, and totally offsets any profit at all they get from the Zune player…probably even putting them deep in the red.

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