itunes_store_account_growth_jun13During Apple's Worldwide Developer Conference keynote, CEO Tim Cook announced that the iTunes and App Store have 575 million store accounts and noted that Apple believes it has more accounts with credit cards than any other company on the Internet.

Asymco's Horace Dediu yesterday used the new figure to take a look at the value of an Apple user to the company. By plotting Apple's previous milestones all the way back to 2009, Dediu found that Apple is adding about 500,000 new iTunes accounts a day and that the company is on pace to add another 100 million accounts by the end of the year.

Dediu also found that iTunes revenue per account is approximately $40 per year, about half the amount seen in 2009.

One would expect such a decline as an user base expands and this approximate 50% decline in revenues per account seems reasonable for a six-fold base increase. In absolute terms the graph shows that an iTunes account generates about $3.2/month in transactions. Put another way, during the last year, an average of $40/yr of economic value is generated by every iTunes account.

The report goes on to extend the analysis to company-wide revenue and enterprise value per account holder as proxies for determine how much a single customer is worth to the company and how much that customer is valued by stockholders.

In early June, Morgan Stanley analyst Katy Huberty noted that Apple's large number of iTunes/App Store accounts offer significant potential for growth in services. And at his D11 interview, Cook touted iMessage, iTunes Store and FaceTime as examples of how Apple's services are tying together Apple's ecosystem, with Cook emphasizing that the "magic" happens at the interaction of hardware, software, and services.

Top Rated Comments

dejo Avatar
149 months ago
As for their claim to the most credit cards, I find this hard to believe. Paypal has been around far longer than iTunes. But I could be wrong.

I don't believe a Paypal account requires a credit card attached.
Score: 4 Votes (Like | Disagree)
.Asa Avatar
149 months ago
I spend a lot more than $40/yr on iTunes ;)
Score: 3 Votes (Like | Disagree)
dejo Avatar
149 months ago
Actually meant Ebay. If you are a seller on Ebay, you are required. I would think Ebay has many sellers?
I signed up for eBay many years ago and didn't need to attach a credit card, so this may be a new policy. And I would be surprised if eBay had that many sellers. But (now it's my turn) I could be wrong.

Also said I could be wrong.
Yeah, sorry if my comment came across as an attack. It was not intended that way. My apologies.
Score: 2 Votes (Like | Disagree)
firedept Avatar
149 months ago
I have 3 accounts, all of which I would like to merge. So I personally believe Apple's numbers are skewed. Do not get me wrong, Apple still has lots of accounts. Also wonder how many are dormant. As for their claim to the most credit cards, I find this hard to believe. Paypal has been around far longer than iTunes. But I could be wrong.
Score: 2 Votes (Like | Disagree)
troop231 Avatar
149 months ago
I bet a Russian would love to have 500,000 new 'accounts' per day :p
Score: 2 Votes (Like | Disagree)
CooKieMoNs7eR Avatar
149 months ago
That's insane #
Score: 1 Votes (Like | Disagree)

Popular Stories

iPhone SE 4 Thumb 1

iPhone SE 4 With Apple's Own 5G Modem 'Confirmed' to Launch in March

Tuesday November 19, 2024 12:12 pm PST by
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
airtag purple

AirTag 2 Rumored to Launch Next Year With These New Features

Sunday November 17, 2024 5:18 am PST by
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development. Below, we recap rumors about a second-generation AirTag. Timing Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
Magic Mouse Next to Keyboard

No, Apple CEO Tim Cook Didn't Say He Prefers Logitech's MX Master 3 Over the Magic Mouse

Sunday November 17, 2024 3:03 pm PST by
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false. The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
Generic iOS 18 Feature Real Mock

Apple Releases iOS 18.1.1 and iPadOS 18.1.1 With Security Fixes

Tuesday November 19, 2024 10:10 am PST by
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
at t turbo indicator iphone 16 pro max v0 8hrh7w5f3w1e1

AT&T Turbo Indicator Showing Up in iPhone Status Bar for Subscribers

Wednesday November 20, 2024 3:42 am PST by
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence. Image credit: Reddit user No_Highlight7476 The Turbo feature provides enhanced network performance through ...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Rumored to Surpass iPhone 6 as Thinnest iPhone Ever

Monday November 18, 2024 1:07 pm PST by
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick. "We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote. If that measurement proves to be accurate, there would be ...
bug security vulnerability issue fix larry

Make Sure to Update: iOS 18.1.1 and macOS Sequoia 15.1.1 Fix Actively Exploited Vulnerabilities

Tuesday November 19, 2024 10:52 am PST by
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices. With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...