So long, break-even. The following is another excerpt from a report titled “iTunes Business Review” which will soon be available for purchase through the Asymco Store. If you are interested in the product please get in touch. iTunes store will be 10 years old next month. From its inception Apple has stated that it aims to run the store “at break-even”. The business has grown so rapidly however that its profit-free nature has come under severe pressure. The reasoning goes that as more media types have been added costs have increased but revenues have increased even faster.
Consider the estimated gross revenue base as shown below: What is known as iTunes today has quintupled in seven years. This implies that the operating costs are spread more evenly and that therefore the possibility exists for some operating margin. Put another way, at break-even the cost of operating iTunes stores would be about $3.75 billion. That’s $150 million in margin content. The Software group is one of the forgotten heroes of Apple. The high-school blogger who's been cracking Apple's secrets.
Gurman at WWDC. Photo: PED FORTUNE -- Trying to scope out Apple's (AAPL) product plans in advance is serious business for a small army of tech journalists, one that has been dominated in the past by the team that covers the company for the Wall Street Journal. But in the walk-up to this week's World Wide Developers Conference, everybody -- including the Journal -- got scooped by an 18-year-old kid named Mark Gurman who goes to high school in Los Angeles and writes on the side for Seth Weintraub's 9to5Mac. Let's review, with the benefit of hindsight, the WWDC predictions Gurman posted over the past month: May 11: iCloud beta website reveals plans for Notes and Reminders web apps, affirms iOS 6 beta coming soon CORRECT May 11: iOS 6: Apple drops Google Maps, debuts in-house 'Maps' with incredible 3D mode CORRECT May 14: Apple readies revamped 15-inch MacBook Pro: Retina Display, ultra-thin design, and super-fast USB 3 CORRECT But he also craves Apple's recognition.
Yeah, right. What Is Thunderbolt And Will It Change Your Life? Though you’re probably hearing about it for the first time now, Intel’s been working on a new interconnection technology for the last few years. “Light Peak”, as it was called up until it was rebranded “Thunderbolt” today, promises a new world of screaming-fast data transfers. The claims are spectacular: 10 gigabit per second transfers (both upload and download!) , dual protocol support, and power over the cable. Light Peak… excuse me, Thunderbolt, is truly the interconnect of the future. The technology launched today on Apple’s latest MacBook Pros, but Apple is just one of a bunch of companies with plans to support Intel’s technology. Thunderbolt devices will slowly trickle out of major industry players over the coming year.
It’s going to be an uphill battle for the standard — the USB horde won’t go without a fight. Thunderbolt Loves Everyone One of the big draws to Thunderbolt is that it’s dual-protocol. This sort of explains why there’s only a single Thunderbolt port on the new MBPs. Apple Has Already Approved The Official Google Voice App For iPhone, Expect It Soon. The App Store review office at 1 Infinite Loop has officially frozen over: we’ve gotten word that the official Google Voice application is on its way to the iPhone in the next few weeks. In fact, we’ve heard from a source close to Google that it’s already been approved — Google just needs to revamp the application to work with the iPhone 4 and iOS’s multitasking capabilities. If you’re a Google Voice user and you’re on an iPhone, this is great news.
It’s been a long, long road to get here. Last July, we broke the news that Apple had blocked the official Google Voice application, which eventually sparked an FCC inquiry into the matter. Apple claimed that the application “duplicated existing functionality”, which didn’t do much to convince anyone as it subsequently accepted similar apps. Nothing happened for well over a year, and the odds of Google Voice ever making its way to the iPhone, at least as a native application, seemed bleak. Apple Should Own The Living Room. Video: Steve Jobs at the D8 Conference | The Loop. Apple accused of trademark infringement over use of iAd name. By Neil Hughes A new lawsuit filed in California takes aim at Apple's forthcoming iAd mobile ad network, alleging that the name is in violation of a registered trademark and will deceive consumers. Innovate Media Group LLC sued Apple last week, accusing the iPhone maker of two counts of trademark infringement, two counts of unfair competition, and one count of common law injury to business reputation.
Innovate Media has alleged that it coined the term "iAds" in 2006, a name it uses for its video delivery technology. Founded by John Cecil, a Yahoo alumni, in 2002, Costa Mesa, Calif., company produces online video advertisements for delivery over the Web. The U.S. The lawsuit makes mention of the fact that Apple vigorously defends its own trademarks, and engaged in "aggressive pursuit" of the Gizmodo journalist who published photos of a lost prototype iPhone. Innovate Media said it contacted Apple co-founder Steve Jobs after he introduced the iAd platform in April. 15 Futuristic Gadgets Apple Is Dreaming Up (And Patenting)
Apple secrecy is bitter fruit on Hill - Kim Hart. Apple is famous for its veil of secrecy around the new iPads and iPhones. But Sen. John Rockefeller and others in Congress wonder whether the company has more than technological innovations to hide. When Apple didn’t participate in an April hearing on children’s online privacy, the West Virginia Democrat who chairs the Senate Commerce, Science and Transportation Committee, gave voice to his suspicions.
“When people don’t show up when we ask them to ... all it does is increases our interest in what they’re doing and why they didn’t show up,” Rockefeller said of Apple and Google, which both declined to testify. “It was a stupid mistake for them not to show up, and I say shame on them.” While Apple’s success has earned rock-star status in Silicon Valley, its low-wattage approach in Washington is becoming more glaring to policymakers. “It’s unfortunate because they are a major player in this area, and we are going to continue to have a long, in-depth conversation,” on these topics, said Sen. iPad Destroys Netbook Business. Why The Cloud Is Critical To Apple's TV Strategy.