Apple Music: in 2006, 1 billion songs
A billion songs downloaded. This is the incredible (until recently) goal that the iTunes Music Store could reach by 2006. The estimate set in a report sent by Piper Jaffray to its customers.
According to the financial consultancy firm, the trend with which Apple's online music store is traveling is much higher than expected. Already during 2005 Cupertino should sell 513 million tracks, 126 million more than expected, approaching the figures that should be, at present, those of 2006. The real boom would be just next year, as the The aforementioned billion would almost be the exact double of the 542 million expected today.
If these data were to be respected, Apple's balance sheet would send a noticeable increase in the turnover produced by the sale of songs. Piper Jaffray thinks that during 2006 sales will total 3.5% of the total, including hardware with an incidence, estimated at 5% profit margin on sales, 4 cents per share on profits. If the margin were 7.5% the profit that the iTunes Music Store would bring to shareholders would be 6 cents per share.