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Apple: iTunes Top U.S. Music Retailer

24 Apr, 2008 By: Chris Tribbey

Apple Inc. reported earnings of $1.05 billion during the second quarter of 2008 (ended March 29), however the company made no mention of how well sales of iTunes store movies and TV shows were going.

Revenue for the iTunes store was grouped with sales of iPod services and Apple-branded and third-party iPod accessories, and totaled $881 million for the quarter.

Total revenue for the quarter was $7.51 billion, boosted mainly by sales of more than 50% more computers during the quarter than during the same period in 2007.

Apple CFO and SVP Peter Oppenheimer noted in a financial call with investors April 23 that the Apple iTunes store has proven profitable for the company. Apple did not break out revenue earned from movie and TV sales vs. music.

“We continue to achieve our objectives of maintaining our high MP3 market share in the U.S. and gaining share internationally,” he said. “Our share of the U.S. MP3 market was 73%, according to the latest data published by [The NPD Group].

“Sales from iTunes were very strong in the quarter and NPD reported that we have surpassed Wal-Mart to become the largest music retailer in the U.S. The iTunes store has over 50 million customers and over 85% share of the U.S. market for legally purchased and downloadable music.”

Revenue from the company's Apple TV, the set-top video box, was grouped with total deferred revenue from the iPhone. Oppenheimer said total deferred revenue for the quarter from those devices was $1.93 billion.

“Our movie rental service has been well received by customers … and (we) will continue to expand video content internationally,” he said.

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