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Apple now adding 500,000 new iTunes accounts per day

post #1 of 35
Thread Starter 
This week, Apple's chief executive Tim Cook presented a new milestone for iTunes accounts: 575 million. As Asymco's Horace Dediu points out, that means Apple is now adding a half million new accounts on average every day.

iTunes 11


Deidiu plotted out Apple's previous milestones announced since 2009 to calculate its current growth rate. If Apple continues at this pace, it will add another 100 million accounts by the end of this year.

June 13, 2013


Earlier this month, a Morgan Stanley analyst noted that Apple's more than half of a billion iTunes accounts are driving new opportunities for growth, describing Apple's global number of accounts as second only to Facebook's billion, but more importantly generating more revenue per account than even mega-retailer Amazon.

Morgan Stanley


That report also noted that Apple's account base was growing significantly faster than its peers, and those accounts were generating the highest free cash flow per account by a wide margin.

Morgan Stanley


In April, NPD Group released figures giving iTunes a 63 percent share of the US digital music market, three times that of second place Amazon (at 22 percent), and in video downloads, a 67 percent share of TV shows and 65 percent of movies.

Amazon and Microsoft's Xbox were tied in second place for movies with 10 percent shares, and collectively shared a 22 percent slice of the TV downloads market. Google Play and other digital media download services didn't figure into the top 80 percent of any category.
post #2 of 35
"But Android has a million activations per second, so it's better."

Wow, more revenue per account than Amazon, and the most expensive thing an iTunes account can buy is... what, $500? Yeah, $999.99, but there's nothing left there that much.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #3 of 35
No way ......really amazing .....
post #4 of 35
Quote:
Originally Posted by Tallest Skil View Post

"But Android has a million activations per second, so it's better."

Wow, more revenue per account than Amazon, and the most expensive thing an iTunes account can buy is... what, $500? Yeah, $999.99, but there's nothing left there that much.

Android has a million activations per second?  I don't think so......  That would mean they are selling 86,400,000,000 devices a day?  I don't think so.   Not even in Larry Page's wettest dreams.

post #5 of 35

So at this rate, if my math is correct, Apple should be going out of business in..6 months? 

post #6 of 35
Quote:
Originally Posted by Slurpy View Post

So at this rate, if my math is correct, Apple should be going out of business in..6 months? 

Of course!

People aren't really using Apple products after all... they are just signing up for iTunes accounts ironically...

1biggrin.gif
post #7 of 35

That is the reason, why Apple also needs the iPhone Cheaper. This ecosystem can skyrocket, when many people, now using aCrap Free, realize that paying something small to get a value is way better than getting no value for free..


Edited by poksi - 6/13/13 at 11:21pm
post #8 of 35
Quote:
Originally Posted by Slurpy View Post

So at this rate, if my math is correct, Apple should be going out of business in..6 months? 

That sounds about right.

 

 

 

 

.... per WSJ and co.


Edited by matrix07 - 6/13/13 at 11:45pm
post #9 of 35

Phenomenal stuff.

 

It saddens me that this isn't reflected in the stock price. Clear evidence that the stock market is irrational.

 

Shareholders who understand Apple's unique value still lose out even though they understand what the market doesn't, simply because the market determines the value, even if they don't understand what they are actually evaluating.

post #10 of 35
Quote:
Originally Posted by poksi View Post

That is the reason, why Apple also needs the iPhone Cheaper. This ecosystem can skyrocket, when many people, now using aCrap Free, realize that paying something small to get a value is way better than getting no value for free..

I think a better reason is how expensive the iPhone is. Locally here in Ireland I always hear people saying they'd buy an iPhone if they were less expensive. And those same folks don't want a two year old model like the 4, over the brand new Samsung phone they all end up acquiring. Most people go off-contract here. The 16 GB model iPhone 5 here costs €679. That's $905.

If Apple can come up with something compelling for the mid end of the market that still makes them money and doesn't eat too much into their main phone, I say they should go for it. The timing feels right this year. Kill all their old small screened phones, and bring out two new phones: the iPhone 5S (or 6), and a less expensive model for those who would absolutely buy a new iPhone if only it were a little cheaper.

They can keep them enough apart in features and power, thinness and lightness that the premium phone will still remain the most appealing model. Samsung stock will be in huge trouble if Apple goes there.
Edited by Ireland - 6/14/13 at 1:32am
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #11 of 35
Quote:
Originally Posted by Ireland View Post


I think a better reason is how expensive the iPhone is. Locally here in Ireland I always hear people saying they'd buy an iPhone if they were less expensive. And those same folks don't want a two year old model like the 4, over the brand new Samsung phone they all end up acquiring. Most people go off-contract here. The 16 GB model iPhone 5 here costs €679. That's $905.

If Apple can come up with something compelling for the mid end of the market that still makes them money and doesn't eat too much into their main phone, I say they should go for it. The timing feels right this year. Kill all their old small screened phones, and bring out two new phones: the iPhone 5S (or 6), and a less expensive model for those who would absolutely buy a new iPhone if only it were a little cheaper.

 

What do they buy instead? I'm also from Europe and I know S4 for example and all other premium Android phones cost pretty much the same. I suppose people you are mentioning would just like cheaper phone and will not buy direct competitor to iPhone 5. Apple wants those users in ecosystem, too and they can still earn some money on device. This doesn't mean that current model is too expensive. It's not. Others have almost the same prices and only Samsung is making profit, so iPhone price is not relatively too big. It is just absolutely too big for price delicate customers. 

post #12 of 35
Apple made a big deal about pointing out how many accounts with credit cards they have. The other shoe is potentially two-fold:

1) Allow account credit without going to a physical store and buying an iTunes card. Let me transfer a bulk amount from my card/bank account at a time, and consolidate my billing. Let me add as many cards to my account as I want, and let me have multiple users (this is a much larger topic in need of attention)

2) Passbook payments in physical stores, and 1-click in e-commerce stores using said credit. iTunes account becomes a debit card with as many bank accounts funding it as I like. This is a killer app.
post #13 of 35
Quote:
Originally Posted by drblank View Post

Android has a million activations per second?  I don't think so......  That would mean they are selling 86,400,000,000 devices a day?  I don't think so.   Not even in Larry Page's wettest dreams.

Sorry!

TS made a small calculating error.

It's actually a TRILLION activations a second. To the power of a centillion.

The sun is actually Google's off-site activation servers, which are starting to get a little warm under load.
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There's nothing your wife/girlfriend/partner wouldn't like more than a 6 Plus...
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post #14 of 35
Quote:
Originally Posted by GTR View Post

Sorry!

TS made a small calculating error.

It's actually a TRILLION activations a second. To the power of a centillion.

The sun is actually Google's off-site activation servers, which are starting to get a little warm under load.

Meh, Apple fanboy. Never gives Google credit. Android has 10 times the activations you said.
post #15 of 35
Quote:
Originally Posted by matrix07 View Post


Meh, Apple fanboy. Never gives Google credit. Android has 10 times the activations you said.

LOL!

Love your signature.
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There's nothing your wife/girlfriend/partner wouldn't like more than a 6 Plus...
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post #16 of 35
Quote:
Originally Posted by Ireland View Post

And those same folks don't want a two year old model like the 4
quote]

I dont understand this premise of wanting a new cheap iphone over a two year old model.

Would a cheaper iPhone be any better than their two year old model? Yes they may drive the price down with plastic, etc. but the bulk of the components would have to be equivalent to or less than the parts from the two year old phone or they have to cut physical features.

They may choose to keep some parts current like the camera but then they'd have to cut even more somewhere else.

So while a new cheap iPhone would/will be a new design and according to rumors available in colors, it won't be that "new" under the hood.
post #17 of 35
I dunno about this one
post #18 of 35
Quote:
Originally Posted by Slurpy View Post

So at this rate, if my math is correct, Apple should be going out of business in..6 months? 

 

Quote:
Originally Posted by Michael Scrip View Post


Of course!

People aren't really using Apple products after all... they are just signing up for iTunes accounts ironically...

1biggrin.gif

 

Well, only stupid people use Apple products so...¡

post #19 of 35

how long until everyone single person has an itunes account? That is an amazing number a day!

Tallest Skil:


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"The future is Apple, Google, and a third company that hasn't yet been created."


 


 

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Tallest Skil:


"Eventually Google will have their Afghanistan with Oracle and collapse"

"The future is Apple, Google, and a third company that hasn't yet been created."


 


 

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post #20 of 35
Quote:
Originally Posted by poksi View Post

That is the reason, why Apple also needs the iPhone Cheaper. This ecosystem can skyrocket, when many people, now using aCrap Free, realize that paying something small to get a value is way better than getting no value for free..

Half a million accounts per day isn't what you'd consider 'skyrocketing'? I don't believe anyone that needs a cheaper iPhone will do much to boost the ecosystem.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #21 of 35
Quote:
Originally Posted by AjbDtc826 View Post

I dunno about this one

 

It's an extrapolation of data points. I'm suspicious too since iTunes is not available for Android and all the other mobile operating systems and I don't know if iTunes can be sync from a PC or Mac to an Android device.

post #22 of 35
I think Apple is best positioned to move its ecosystem any direction that makes most sense: Like Amazon, Apple has a large content store with credit cards on file. Like Google, it has an ad network that can popular cloud services. Like Samsung, it generate large sales from popular devices.

Apple is the only company that generates profit from all three! Well, maybe not iAd, but that could change with iTunes Radio and Apple TV.
post #23 of 35
Quote:
Originally Posted by lkrupp View Post

It's an extrapolation of data points. I'm suspicious too since iTunes is not available for Android and all the other mobile operating systems and I don't know if iTunes can be sync from a PC or Mac to an Android device.

No but music bought from iTunes can be put on a Android device. There's software called doubletwist that does it conveniently and it looks very much like iTunes but it's not a store just a music manager.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
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post #24 of 35

That's over double the net population growth of the planet. Probably neither growth rate is sustainable.

post #25 of 35
If you guys have forgotten: iTunes works with PCs and iPods.

Plenty of people have a feature phone or a cheap Android or blackberry and use an iPod touch for music and apps. And of course there are 100s of millions of other iPod users, many on PCs.
post #26 of 35
Quote:
Originally Posted by CustomTB 

I dont understand this premise of wanting a new cheap iphone over a two year old model.

Would a cheaper iPhone be any better than their two year old model?

So while a new cheap iPhone would/will be a new design and according to rumors available in colors, it won't be that "new" under the hood.

Lightning, a 4" display, probably a newer chip over the 4, and perhaps a better camera. And like you said, colours.

The average consumer wouldn't want that over the 4? LOL

The 5S would be differentiated with a 13MP iSight camera, larger storage options, a higher quality FaceTime camera, an extremely thin and light machined aluminium design, a fingerprint sensor, and possibly even NFC (though not likely on that front).
Edited by Ireland - 6/14/13 at 11:11am
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #27 of 35
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Originally Posted by Corrections View Post

If you guys have forgotten: iTunes works with PCs and iPods.

Plenty of people have a feature phone or a cheap Android or blackberry and use an iPod touch for music and apps. And of course there are 100s of millions of other iPod users, many on PCs.

You don't need an iPod to have an iTunes account. You can buy movies, shows and music and play them on your PC desktop or laptop directly in the iTunes jukebox. And you can also have an iTunes account if the only piece if personal technology you own in your house is an Apple TV.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #28 of 35
Quote:
Originally Posted by GTR View Post

LOL!

Love your signature.

Glass is such a dorky and privacy invasive product.

If Apple bought out anything like that I'd be truly concerned, for the company's future, and for Cook and co's ideals.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #29 of 35
Quote:
Originally Posted by Ireland View Post

If Apple bought out anything like that I'd be truly concerned, for the company's future, and for Cook and co's ideals.

'Course it could just be to keep the tech away from everyone else, like they've done with several patents on invasive advertising.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #30 of 35

I hope this is truly good news for Apple.  The cynical part of me wonders if Apple isn't just trying to buffer the coming bad news that smartphone sales (of all manufacturers) are way down this quarter.

post #31 of 35
Quote:
Originally Posted by Ireland View Post


Lightning, a 4" display, probably a newer chip over the 4, and perhaps a better camera. And like you said, colours.

The average consumer wouldn't want that over the 4? LOL

The 5S would be differentiated with a 13MP iSight camera, larger storage options, a higher quality FaceTime camera, an extremely thin and light machined aluminium design, a fingerprint sensor, and possibly even NFC (though not likely on that front).

Sounds about right.

 

But, Apple would have to debut something awe-inspiring in the 5S for the cheaper iPhone not to steal it's thunder.

 

Even if the cheaper iPhone is slower, fatter, and has a worse camera, most people even on-contract would probably buy it over the 5S because the phones wouldn't be that different.

post #32 of 35
Quote:
Originally Posted by Corrections View Post

If you guys have forgotten: iTunes works with PCs and iPods.

Plenty of people have a feature phone or a cheap Android or blackberry and use an iPod touch for music and apps. And of course there are 100s of millions of other iPod users, many on PCs.

An iPod Touch is a gateway drug. Sure it seems like a simple music player that can play games too... oh, and it can do some other things... But, if you let that go on, in no time it's joined by an iPhone or an iPad. The next thing you know they went full mainline and are using an iMac.

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #33 of 35
Quote:
Originally Posted by Ireland View Post

Lightning, a 4" display, probably a newer chip over the 4, and perhaps a better camera. And like you said, colours.

The average consumer wouldn't want that over the 4? LOL

Of course they would want it.... Lightning, 4", newer chip, better camera... All great options, but it sounds like you want the 5 at a lower price point and in a few months it will be. But for Apple to have a "cheap" new iPhone they'll have to make substantial cuts somewhere.
post #34 of 35

Well Android can never get that many accounts per day. It can't exceed iTunes for sure, as iOS is the best.

post #35 of 35

Wow! That's amazing, more than 500,000 iTunes accounts per day.

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