Tuesday, June 26, 2007

iTunes Sales Beat Amazon's, Target's!

The AP is reporting that Apple's iTunes has out sold Amazon and Target in music sales during Q1 2007. Here is the story. (The bold in the story is mine)

Apple Inc.'s iTunes online store was the third-largest overall music retailer in the U.S. in the first quarter, leapfrogging Amazon.com Inc. and Target Corp. in units sold, a market-research firm said. ITunes had a 9.8% market share , behind Wal-Mart Stores Inc.'s 15.8% and Best Buy Co.'s 13.8%, according to NPD Group. Amazon.com had 6.7% and Target 6.6%, the firm said. NPD's survey doesn't include mobile-music sales, nor does it factor in revenue.

So this comparison is based on unit sales not revenue. This is not an Apples to Apples comparison (pardon the pun) Of course iTunes would beat Amazon and Target. They are selling individual songs, each is classified as a unit. So if an iTunes customer spends $10 on iTunes songs he/she had purchased 10 units while Amazon and Target sell one CD for $10 of 10 songs and that is classified as one unit. Certainly iTunes is very successful but you can't compare Apples to Oranges. Compare them on revenue and see where they end up.

I just wanted to talk about something other than eBay.

No comments: