by Christopher Freeburn | February 27, 2013 2:42 pm
Here are your Apple rumors and AAPL news items for today:
Dominance: Apple generated $4.3 billion in revenues from iTunes music downloads last year, AppleInsider notes. Of that, $3.4 billion was paid to music labels. 60% of all digital music revenues received by record labels came from iTunes. Music downloads represent about 22% of iTunes overall revenues, which also include, books, movies, TV shows and apps. The online store, which sold its 25 billionth download last month, has long been the stop music download platform. It’s revenue from music downloads continues to grow at about 10% annually. Overall iTunes revenue is estimated to be growing at 50% annually. Last year the recording industry posted its first annual revenue growth since 1999.
Tough Times: Speaking at the Mobile World Congress this week, Jeffries analyst Peter Misek said that Apple may face rising difficulties over the next two years, Fortune noted. Misek warns that spending to increase its microprocessors and touchscreen supply chain could force Apple to double its capital expenditures by 2015. He also warns that overseas iPhone sales are slowing, particularly in emerging markets. Pressure to build its presence in international markets will also hit Apple’s well-known pile of surplus cash, reducing it by up to $10 billion, and deferring as much as $40 billion in cash collections over the next two years.
Countdown: Apple’s shiny new headquarters in Cupertino, Calif., will open in 2016, CNET notes. The enormous circular complex, which has been described as looking like a spaceship, has yet to receive final approval from the city. When finished, it will house 14,200 workers. The latest version of the plans calls for 2.8 million square feet of space. Earlier versions of the plans called for a campus with space for 12,000 workers. Apple had planned to open the building in 2015, but encountered delays with construction and city approvals. More than 7,000 trees will grace the complex’s landscaped grounds. The company hopes to finally break ground this year.
For more about the company, check out our previous Apple Rumors stories.
Source URL: https://investorplace.com/2013/02/wednesday-apple-rumors-itunes-music-revenue-up-10-in-2012/
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