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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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