iBooks to boost Apple's iTunes into a $13 billion business by 2013
Apple's ubiquitous iTunes Store and its associated services are forecast to generate a staggering $13 billion in revenues during the company's fiscal 2013, growing at an expected rate of nearly 40% over the next three years as publishers trend towards its iBook format.
That's according to Global Equities Research analyst Trip Chowdhry, who singled out iBooks as one of the primary growth catalysts behind the Cupertino-based company's digital download business, explaining that his research shows that book publishers themselves have begun to prefer AppleÂ?s iBook Â?ePubÂ? format over that of AmazonÂ?s market-leading Kindle format.Â*
He further suggests that the quality of the iBooks app offered by Apple far exceeds that of the Kindle app supplied by Amazon, which may influence where books are being bought. "[R]esearch with students indicates that they would rather have books on iPad vs. Kindle," he said, adding that in terms of usability on a scale of 10, the iBook app is "probably 8 and Kindle application on iPad is probably [a] 5."
The Kindle application "lacks the finish and crispness of an iBook," he said.
Alongside the recently announced milestone of 100,000 iPad apps on the AppStore, statistics show the typical number of apps found on the average user's iPad has at least tripled in the past six months, rising from fifteen to more than forty-five.Â*
As such, Chowdhry has increased his revenue projections for Apple's recently ended fiscal third quarter by taking into account the rapid rise of AppleÂ?s iBook and App Store businesses, the company's presumably strong Â?Back To SchoolÂ? sales and its market share successes in the enterprise.
He's now forecasting revenues of $24.80 billion to go along with earnings of $5.81 a share, showing a year-over-year increase of 58 percent and 65 percent, respectively, for the three-month period ended June. On average, analysts polled by Thomson Reuters expect Apple to earn $5.69 per share on sales of $24.67 billion.
For the entire fiscal year of 2011, Chowdhry estimates call for revenues of $104.08 billion and earnings of $25.09, showcasing a 59.8 percent and 65.6 percent increase from last year. This compares to Street consensus estimates of $24.82 per share on revenues of $103.52 billion.
iTunes was released 10 years ago on Jan. 9, with the iTunes Store being launched alongside Version 4. Since then, over 10 billion tracks have been downloaded, making it the most successful music store in history.
That's according to Global Equities Research analyst Trip Chowdhry, who singled out iBooks as one of the primary growth catalysts behind the Cupertino-based company's digital download business, explaining that his research shows that book publishers themselves have begun to prefer AppleÂ?s iBook Â?ePubÂ? format over that of AmazonÂ?s market-leading Kindle format.Â*
He further suggests that the quality of the iBooks app offered by Apple far exceeds that of the Kindle app supplied by Amazon, which may influence where books are being bought. "[R]esearch with students indicates that they would rather have books on iPad vs. Kindle," he said, adding that in terms of usability on a scale of 10, the iBook app is "probably 8 and Kindle application on iPad is probably [a] 5."
The Kindle application "lacks the finish and crispness of an iBook," he said.
Alongside the recently announced milestone of 100,000 iPad apps on the AppStore, statistics show the typical number of apps found on the average user's iPad has at least tripled in the past six months, rising from fifteen to more than forty-five.Â*
As such, Chowdhry has increased his revenue projections for Apple's recently ended fiscal third quarter by taking into account the rapid rise of AppleÂ?s iBook and App Store businesses, the company's presumably strong Â?Back To SchoolÂ? sales and its market share successes in the enterprise.
He's now forecasting revenues of $24.80 billion to go along with earnings of $5.81 a share, showing a year-over-year increase of 58 percent and 65 percent, respectively, for the three-month period ended June. On average, analysts polled by Thomson Reuters expect Apple to earn $5.69 per share on sales of $24.67 billion.
For the entire fiscal year of 2011, Chowdhry estimates call for revenues of $104.08 billion and earnings of $25.09, showcasing a 59.8 percent and 65.6 percent increase from last year. This compares to Street consensus estimates of $24.82 per share on revenues of $103.52 billion.
iTunes was released 10 years ago on Jan. 9, with the iTunes Store being launched alongside Version 4. Since then, over 10 billion tracks have been downloaded, making it the most successful music store in history.
Comments
But Apple seems to have demonstrated with the music market that eventually it can win the content owners over to sensible pricing once they see the volume. So here's hoping.
Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store
That and iMessage for Mac seem like "no brainers."
Once Apple adds an iBooks app for mac I'll actually take it seriously and buy books from the iBooks store
I read on my iPhone using iBooks. Its great. And just to branch off a little - I don't know if people use the Safari 'reader' but I have grown to love it.
I read on my iPhone using iBooks. Its great. And just to branch off a little - I don't know if people use the Safari 'reader' but I have grown to love it.
Ugh - I hate iBooks on the iPhone. No orientation lock and a distinctly sticky page turning animation. Maybe on the iPhone5 it will be better.
his research shows that book publishers themselves have begun to prefer Apple?s iBook ?ePub? format over that of Amazon?s market-leading Kindle format
Curious wording when the original says that more now there are more publisher tan before on iBook but no that they prefer over Amazon.
It's not problem of format because ePub is the format of Nook and I think the selection of books of B&N is greater than Apple selection.
What was it Steve Jobs said about reading, again? Not that he or anybody at Apple cares.
Did you read that somewhere?
it's the pricing. Apple is giving publishers what they have always had, control over their pricing. This is annoying as a consumer sometimes, when a book is 2 or 3 bucks more than on kindle. It's annoying on iTunes too at times - especially with old TV shows like Star trek and Buffy.
But Apple seems to have demonstrated with the music market that eventually it can win the content owners over to sensible pricing once they see the volume. So here's hoping.
I don't believe that Amazon could have kept the pricing model they had. Every article about it, from people close to the situation, said that Amazon was paying publishers more than they were charging consumers. That's a model that will fail.
What Amazon was doing was to attempt to build up a service that monopolized the industry will its lower selling prices, and then to bring the hammer down on publishers with demands that they lower their prices to Amazon. Likely, they would have also raised prices to consumers as well.
All that Apple did was to rectify this pricing mismatch. We all want cheaper books, as we want cheaper everything, something that's made China the premiere manufacturing country. But we can't always get what we want, because it has to work for all sides. If one part of the triangle of publishers, sellers and buyers is too far out of wack, the entire thing falls apart.
I think we will see slightly falling e-book prices over time, and some are pretty cheap now. I don't blame publishers for trying to make their money back early on, as that's what all companies do
Did you read that somewhere?
Remember when he said that people don't read books anymore? I think he said that most people only read one book a year or so.
But smart people change their minds when the evidence shows them otherwise. I would imagine that when the Kindle's sales rose to a certain point, even though Amazon has, so far, refused to give sales numbers, Apple decided that it was a worthy area to get involved in.
Remember when he said that people don't read books anymore? I think he said that most people only read one book a year or so.
But smart people change their minds when the evidence shows them otherwise. I would imagine that when the Kindle's sales rose to a certain point, even though Amazon has, so far, refused to give sales numbers, Apple decided that it was a worthy area to get involved in.
Smart people also pick up on sarcasm.
it's the pricing. Apple is giving publishers what they have always had, control over their pricing. This is annoying as a consumer sometimes, when a book is 2 or 3 bucks more than on kindle. It's annoying on iTunes too at times - especially with old TV shows like Star trek and Buffy.
But Apple seems to have demonstrated with the music market that eventually it can win the content owners over to sensible pricing once they see the volume. So here's hoping.
But didn't Apple control music pricing on iTunes from day 1? With books, they lack control and are less likely to gain leverage once you don't have it.
The Publishing and it's adjoining literary agency industry either gets on board or will see much of their control eroded by 2013.
Ugh - I hate iBooks on the iPhone. No orientation lock and a distinctly sticky page turning animation. Maybe on the iPhone5 it will be better.
Orientation lock works just fine on my iPhone4. And I have experienced no "sticky pages" except when I have a jam sandwich while reading.
Smart people also pick up on sarcasm.
As if you would know.
I'm now done with that last book and my conclusion is that I don't really ever see myself buying a real paper book ever again. It makes no sense. I like to set the color to sepia and I turn the brightness down, and it comes pretty close to the feel of reading on real paper in my opinion. I don't read outside, so that's not really a concern of mine. I'm going on vacation soon, and my iPad is already loaded up with a few books to keep me busy if the weather is lousy.
I began reading a trilogy a while ago. I had bought the first two books in paperback and when it came time to get number three, I had gotten an iPad 2 by that time, so I decided to get the last book electronically and read it on my iPad as an experiment.
I'm now done with that last book and my conclusion is that I don't really ever see myself buying a real paper book ever again. It makes no sense. I like to set the color to sepia and I turn the brightness down, and it comes pretty close to the feel of reading on real paper in my opinion. I don't read outside, so that's not really a concern of mine. I'm going on vacation soon, and my iPad is already loaded up with a few books to keep me busy if the weather is lousy.
I'm the same way about it. I've also not renewed subs to magazines when they became available from Zinio. I'm much happier without all that extra paper on many shelves.
I certainly prefer iBooks over Kindle, and I'm glad to read that publishers may be flocking to it as I oft find the selection to be weak.
That and iMessage for Mac seem like "no brainers."
Agreed.