Recurring Revenue

  • Posted: 09 March 2010 09:47 AM

    Here is a revenue source that should be huge and increasing every year. It has not been mentioned in the press AFAIK. With the seductive Apple lock in to devices like iPhone and especially iPad it will give the street reason to believe that AAPL revenues are sustainable without having a world shattering device introduction every year…. Anyone want to guess what the revenue will be from magazines, movies, videos, newspapers, GAMES etc. will be? Is the 30 percent take by Apple realistic across all content?


    http://www.appleinsider.com/articles/10/03/09/content_sales_predicted_to_near_30_of_ipad_hardware_revenue.html

         
  • Avatar

    Posted: 09 March 2010 11:10 AM #1

    SNIPUS - 09 March 2010 01:47 PM

    Here is a revenue source that should be huge and increasing every year. It has not been mentioned in the press AFAIK. With the seductive Apple lock in to devices like iPhone and especially iPad it will give the street reason to believe that AAPL revenues are sustainable without having a world shattering device introduction every year…. Anyone want to guess what the revenue will be from magazines, movies, videos, newspapers, GAMES etc. will be? Is the 30 percent take by Apple realistic across all content?


    http://www.appleinsider.com/articles/10/03/09/content_sales_predicted_to_near_30_of_ipad_hardware_revenue.html

    AppleInsider ran a article on operating margins for Itunes back in 2007.  From my research it seems pretty accurate.

    Apple has stuck with the 70/30 for the App store.  For reference Amazon’s operating margin for 2009 was 5.2% and Walmarts 5.87%.  As far as first order guesses a Kindle blog said

    A big chunk of the $25 billion dollars a year US book industry and a big chunk of the global book industry are going to morph into the new eBooks industry.

    Kindle blog

         
  • Posted: 09 March 2010 11:12 AM #2

    There is also some more revenue from the add business. Talks about this is probably the reason why agreements with magazine and press are delayed.