Optical/IP Networks

Another Nice Earner for Apple

1:50 PM -- If you're a regular reader of Unstrung you'll know we've been following the revenue streams that flow to Apple Inc. (Nasdaq: AAPL) from the iPhone. (See Peeling Back Apple's iPhone Revenue.)

Well, here's another one. The company makes 30 percent of the cost of a download from its iPhone store, which can be used over cellular or WiFi networks.

Some record companies aren't happy about this. Vivendi 's Universal Music Group is calling Apple's contract terms "indecent."

Which, as my friend Howie pointed out, is rather strange, since record companies only make 11 dollars or so out of a full-price CD sale from a store. So, they still appear to be making proportionally more from iTunes sales.

— Dan Jones, Site Editor, Unstrung

Sign In