Content sales predicted to near 30% of iPad hardware revenue

Content sales predicted to near 30% of iPad hardware revenue

If true, it would be a significant change for Apple, which had long maintained that both the App Store and iTunes do not create much profit for the Cupertino, Calif., company. In January, Apple Chief Financial Officer Peter Oppenheimer said the company runs «a bit over break even» for both the App Store and iTunes stores. Apple has said for some time that those businesses are not meant to be profit generators, but rather a means of attracting customers to the products they represent.

«We note the vast majority of the naysayers have not yet had the opportunity to use the iPad on a firsthand basis,» he wrote. «As we stated in the past, we were hooked after the first 15 minutes of use. In our view, the true genius of the device is its media/content aspects (e.g. eBooks, newspapers/magazines, Apps/games, movies/TV episodes, etc.) which we believe will be recurring in nature.»

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