iPhone App Store to eventually compete with iTunes Store?

To blog Using Google Reader at 06/10/2008 11:42 PM

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It's not hard to connect the dots and examine who is subdizing who. If Apple finds better margin in iPhone business line they will hesitate in putting their soul behind iTunes. via FORTUNE: Apple 2.0 by Philip Elmer-DeWitt on 6/10/08 “We don’t intend to make any money off the App Store,” said Steve Jobs back in March. “We’re basically giving all the money to the developers and the 30 percent that pays for running the store, that’ll be great.” (link) But like the iTunes Store, which Apple (AAPL) claims to run at “just above break even,” but which probably generated $200 million to $500 million in profit for Apple last year (see here and here), the App Store could prove to be a nice little cash cow for Apple over time. How nice? Ask two different analysts and you’ll get two different answers. In a report to clients on Tuesday, Bernstein Research’s Toni Sacconaghi ran the numbers and concluded: “We don’t see revenues from the new Apps (sic) Store as meaningfully impacting Apple’s economic m...

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