iTunes is now nearly half the size of Google’s core business

iTunes is now nearly half the size of Google’s core business

By Philip Elmer-DeWitt February 11, 2014: 7:50 AM ET

And at 34% year over year, it’s growing slightly faster says Asymco’s Horace Dediu.

image001-1

Click to enlarge.

FORTUNE — Is Apple is still a growth company? With the Wall Street Journal‘s question still hanging in the air, Asymco’s Horace Dediu has found a novel way to highlight a source of growth within Apple (AAPL) that is often overlooked.

In the attached chart, he’s stacked Google’s (GOOG) core business (i.e. without Motorola and “other”) against Apple’s iTunes/Software/Services division.

Taking into account the 70% Apple pays app developers (which the company doesn’t report as revenue), Dediu figures the group had “gross” revenues of $23.5 billion with growth of 34% year over year.

“On a yearly basis,” he writes, iTunes “is nearly half of Google’s core business and growing slightly faster.

“The iTunes ’empire’ of content and services would be ranked as number 130 in the Fortune 500 ranking of companies (slightly below Alcoa and above Eli Lilly).”

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: