John Paczkowski

Recent Posts by John Paczkowski

iTunes Makes Big Bucks for a “Break-Even” Business

When Apple last reported earnings, the company said iTunes billings for the quarter came it at over $4 billion. Apple expects to post similar billings in the quarters ahead for a $16 billion annual run rate. That’s an awfully big number. How does it break down on a per-user basis?

Asymco’s Horace Dediu has done the math and come up with a number: About $40 per year, on average. Seem low to you? Does to me, but that’s from my own cord-cutter perspective. But taken together with all gross content revenues — including services & software — Apple’s iTunes business cleared over $5.5 billion in the last quarter (Caveat 1:That big number is as large as it is thanks to significant growth in app sales; Caveat 2: iTunes’ sales growth may be slowing).

Not bad for what Apple conceived as a “break-even” business, one that it doesn’t yet view as a leg on its three-legged stool. Perhaps it’s time for the company to upgrade that analogy to four-legged chair — or throw in the iPad as well and make it a recliner …


Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

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There’s a lot of attention and PR around Marissa, but their product lineup just kind of blows.

— Om Malik on Bloomberg TV, talking about Yahoo, the September issue of Vogue Magazine, and our overdependence on Google