The amazing growth of the App Store has catapulted Apple’s iTunes division to a position as one of the most valuable businesses in the world, grabbing more revenue than established stalwarts such as Xerox and CBS.
If the iTunes business were spun off, its $23.5 billion in gross yearly revenue would be good for 130th place on the annual Fortune 500 list, according to data compiled by Asymco’s Horace Dediu. The iOS and Mac App Stores alone, with more than $10 billion in sales last year, would themselves slot in at number 270 ahead of credit firm Discover and casino giants MGM and Caesar’s.
App Store revenues alone are estimated to have grown by 105% last year. Meanwhile, sales in the iTunes Music Store declined by 14%. That combination allowed apps to replace music as Apple’s largest revenue driver for the first time ever.
Overall, the iTunes business is experiencing a growth rate of approximately 34% year-over-year.
