February 11, 2014
Just how big is Apple’s iTunes? Big enough that as a stand-alone company, it would rank No. 130 on Fortune’s annual list of the Top 500 companies in the United States, according to Asymco. In 2013, iTunes revenue topped $23.5 billion. This was an increase of 34 percent year over year, and would place iTunes Inc. between Alcoa and Eli Lilly in the latest Fortune 500 rankings. The company would tie Exelon on the list, which also reported revenue of $23.5 billion. According to the report, iTunes growth in 2013 “was driven by increases in revenue from App sales reflecting continued growth in the installed base of iOS devices and the expansion in the number of third-party iOS Apps available. Net sales of digital content, including music, movies, TV shows and books, from the iTunes Store was relatively flat in the first quarter of 2014 compared to the first quarter of 2013.” The biggest gainers in 2013 included a 46.6 percent increase in revenue from third-party content. Video (19 percent), apps (105 percent), services (37 percent), and pro apps (29 percent) also saw gains. Music downloads and books each saw a net loss in 2013, as did OS X and iWork/iLife. In the final quarter of 2013, Apple began offering iWork and OS X for free. The net effect of this has been a reduction in revenues from those software titles of about $350 million for the quarter. As a whole, Apple ranks No. 6 on the Fortune 500. Cupertino is behind Walmart, Exxon Mobile, Chevron, Phillips 66, and Berkshire Hathaway on this list. In terms of profits, Apple ranks just below Exxon Mobile. See also: Apple Is Buying New '.Camera' And '.Photography' Domains, Apple Topped The Combined PC And Tablet Market At The End Of 2013, and Apple Joins Google In Going After Patent Trolls.