Apple iTunes now has a “staggering” number of 800 million accounts, while the revenue from iTunes, software and service grew at a double-digit rate, according to CEO Tim Cook.
Apple CEO revealed some of the key information on its business during the company’s conference call to discuss the first quarter financial results.
The company previously announced during its annual developers conference in June 2013 that iTunes has reached the milestone of 575 million accounts with 300 million accounts in iTunes cloud. Since then, the company hasn’t revealed the information related to iTunes accounts.
During the conference call, Cook said:
“We now have an almost 800 million iTunes accounts, most of these with credit cards and this is a staggering number.”
The word “staggering” mentioned here by Apple CEO suggests that iTunes will achieve the exact number of 800 million accounts soon, if the growth continues – may be, yet to reach the steady number. However, despite the quick jump in iTunes accounts, the sales sees a sign of deceleration. But, Cook called iTunes as a major part of Apple business.
“Keep in mind, in that category there’s several things — not just the App Store kind of revenues,” Cook said responding to an analyst’s question on the call. “So if you looked at App Store only, it would look a little different from what you’re saying. But in terms of your question about monetization, I do believe that we can monetize more than we are from a services point of view in existing areas and in new areas. And I’m particularly encouraged that when I look at the App Store and how it’s doing, the strength was broad-based. In fact, in China, the growth was in the triple digits.”
Some of the highlights of the conference call, as noted by Apple Insider:
- $45.6 billion in revenue was new March quarter record and the highest-ever non-holiday quarter
- iTunes, software and services revenue grew at a double-digit rate
- 800 million iTunes accounts, most of which have credit cards
- Earnings per share saw highest growth rate in last six quarter
- Mac sales continued to exceed the overall PC market
- Over two-thirds of people registering an iPad were new to the platform, while over half iPhone users were also new
- Products and services are expanding into “new markets,” Cook said
- Incoming retail chief Angela Ahrendts joins Apple’s executive team next week
- Apple has acquired 24 companies over the last 18 months
- The company is planning annual dividend increases going forward
- Apple ended quarter with $156 billion in cash, about $18 billion of it held domestically
- Apple has no plans to repatriate hits huge overseas cash sum, saying it would not be a valuable move for shareholders
- 7-for-1 stock split will take place June 2, 2014, trading will begin split-adjusted on June 9
In after-hours trading on Wednesday, Apple’s stock saw a jump of more than 8 percent. Stay tuned for more updates on this story.