Peter Kafka

Recent Posts by Peter Kafka

Apple’s $8 Billion Media Business

Apple is really in the hardware business, not the software business — it just uses the sales of apps, music, movies, etc., to help sell gadgets.

But boy does it sell a lot of software: iTunes sales came in at $1.9 billion last quarter, which puts the digital store at a run rate of $8 billion.

That’s up 35 percent from a year ago, when iTunes did $1.4 billion.

During Apple’s conference call today, CFO Peter Oppenheimer answered a query about delays getting new content into iTunes with a boast about the depth of the store’s music and video catalog. But as always, my assumption is that the bulk of that growth is fueled by app sales, not traditional media sales.

 


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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik