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Month March 2013

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Sponsorship by The Syndicate

How many iPhones will T-Mobile USA sell?

From the initial product launch until the end of 2012, AT&T has activated 72 million iPhones. Verizon began selling iPhones four years after AT&T and managed to activate 26 million since. Sprint began nine months after Verizon and has activated 8.5 million.

In proportion of their subscriber bases, the activations are shown in the following graph.

Screen Shot 2013-03-28 at 3-28-12.50.06 PM

 

I identified the reported iPhone activations with blue areas while the sum of green and blue areas represent total subs at the end a the given year.

I also took the liberty of forecasting 2013 data in order to try to estimate T-Mobile’s contribution.

Apple retail vs. Amazon retail

As part of a continuing series on the iTunes economy I described how iTunes fits within Apple’s overall revenue and cost structure. The operation is a modest contributor accounting for single-digits percent of revenue and operating margins.

One additional question is how does iTunes compare with other non-Apple retail businesses. The obvious comparable businesses are Google Play and Amazon’s digital content businesses. Unfortunately we can’t compare iTunes with Google Play because Google does not reveal any details about Play revenues (or units sold/downloaded or payments to developers or any other data.)

Also unfortunately, we can’t compare iTunes with Amazon digital sales because Amazon does not provide that detail either.

What we do have is Amazon’s overall revenues (and operating margin.) So that’s what I have compared:

Screen Shot 2013-03-27 at 3-27-2.09.30 PM

Since we have Amazon’s overall retail revenues it seemed fitting to also add Apple’s physical store retail data on top of iTunes for additional perspective.

Here are some observations:

iTunes Segment Revenues in Context

In the last few posts I estimated the iTunes economy in some detail. In absolute figures, the revenues and cost structures of iTunes are substantial:

  • 6.3 billion transactions in the last quarter
  • $4.6 billion consolidated revenues (including software & services)
  • $3.3 billion in content payments
  • $650 million in operating income

However, as a part of the entire Apple revenue model, iTunes appears to be a small contributor. The following diagrams shows where revenues came from and where they were spent during the last quarter

Sankey-Income1

A few notes:

The Critical Path #77: Making Sausages

The more we deconstruct and take apart iTunes, the more we come to respect how is cannot exist independent of the system it’s a part of. Its scope and scale and its history and future all indicate that there is more to it than just a store and that it might be a platform in its own right. We get into some more details about all these details and talk about where it came from and where we think it will end up.

via 5by5 | The Critical Path #77: Making Sausages.