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iTunes sales surge

Added 01-08-2008

Whilst the sales of the iPod may be stumbling - in 2008 (7-9% growth) - iTunes sales were surging, up 34%. What does this mean? Well, it means iTunes is creating about half the income of iPod sales. But with sales predicted to continue growing, Apple have good cause not to be overtly concerned about stunted iPod sales growth.

Selected analysts also believe Apple may continue to announce price cuts, to keep iPod sales buoyed and increase iTunes sales bumper. One note of concern is the licensees of the music. The licensees have noted Apple's bumper profits and are after a bigger share of the iTunes pie.

While Apple may think lincensees are being greedy, they could potentially make iTunes unprofitable. This has forced Apple hand, who have conceded they may have to close iTunes down if the licensees continue with their demands.