iTunes to Represent 20% of Apple's Profit This Year
Although Apple is still chiefly thought of as a hardware company, Apple's bottom line continues to reflect its profitability selling digital goods and services.
On Monday, Macquarie Capital projected that Apple's profits could massively swell by the end of this decade on the strength of strong sales across iTunes and the iOS ecosystem. Analyst Ben Schachter believes that iTunes alone will help Apple rake in some $30 billion this year.
"That is almost equivalent to its iPad business and is more than Facebook, Twitter, Yahoo, LinkedIn and Netflix's combined revenue (on consensus 2014 forecasts," Schachter observed in a research note.
By the start of 2015, Schachter proposes that Apple's earnings from iTunes, software and services will represent more than 20% of the company's profits. That percentage is expected to jump within two years to just over 30%, inching closer to a 37% of Apple's annual profits by 2020.
Source: Macquarie Capital (via AppleInsider