Thursday, April 26, 2007

Apple makes money on iTunes

Pacific Crest Securities analyst Andy Hargreaves claims that Apple makes 10 cents on each song sold.

Hargreaves' breakdown on the wealth distribution inherent in a 99 cent download follows (thanks to Seeking Alpha):

Wholesale cost (music): 69 cents.
Network fees: 5 cents.
Transaction fees: 10 cents.
Operating expenses: 5 cents.
Profit per song: 10 cents.

Article Link (MacWorld)