

The iTunes Store: Profit Machine - toffer
http://bits.blogs.nytimes.com/2008/08/11/steve-jobs-tries-to-downplay-the-itunes-stores-profit/

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iamdave
Pundits fear that blogs are making the world a more difficult place for
mainstream media, this is a perfect example; the NY Times reporting on things
the blogosphere has long established and followers of bloggers are already
well aware of: _iTunes makes a lot of money_.

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siculars
i have no doubt itunes is a money maker for apple. not only that, but it will
make more money as they add more users. the hardware costs are fixed and the
r&d is also fixed.

the point about $0.25 being eaten up per transaction get more upsetting as
your average amount per transaction decreases. i doubt highly that itunes avg
transaction amount is closer to $0.99. i would wager it is between 5 and 10 on
the conservative side.

furthermore, itunes is good for the economy in general as noted in my post on
markets, [http://siculars.blogspot.com/2008/08/new-markets-if-
innovati...](http://siculars.blogspot.com/2008/08/new-markets-if-innovation-
is-lifeblood.html).

