During its quarterly earnings conference call for the second quarter of 2014, Apple shared details on its iTunes apps and services ecosystem, which is growing to become an important source of revenue for the company.
In the just ending quarter, Apple customers spent $5.2 billion in iTunes content, up 24 percent year over year. Though Cook didn’t divulge details, much of this growth can be attributed to the popularity of the iOS App Store, which now has over 70 billion total app downloads, up from 65 billion in January 2014.
Apple also has 800 million iTunes accounts, many of which have credit cards on file with the company. This is up significantly from 575 million customers Apple reported in June 2013. This customer base is an important factor for future efforts in developing a mobile payment system and in introducing new premium services. Cook confirmed that this is area Apple can improve, saying “I do believe we can monetize more than we are in existing areas and new areas.”
Apple met the high-end or exceeded its guidance and beat Wall Street estimates today when it announced quarterly revenue of $45.6 billion and quarterly net profit of $10.2 billion, or $11.62 per diluted share in the second fiscal quarter of 2014 (first calendar quarter of 2014). This is up from the revenue of $43.6 billion and