Analyst: Here’s How Huge iTunes Has Become

Dediu also estimated that with growing sales — the store sold its 25 billionth song earlier this month — and increasing revenues, Apple may now be generating significant operating margins from software and other iTunes sales.

“Looking at profitability, there is potential for operating margin in Apple Software and App Agency Fees and perhaps some of the Media Transaction Fees,” he wrote. “Historically, Apple suggested that their App and Media stores ran at break-even but that may no longer be the case. Operating margins from Software may be significant.”

Breaking it down, the analyst calculated that iTunes music revenue was growing at about 10 percent, App Store revenue at around 50 percent, and video and other revenue at around 90 percent.

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