Asymco’s Horace Dediu broke down iTunes’ economy and placed it in context with the entire Apple revenue model.

The excellent diagram above illustrates Apple’s revenues in Q4 2012. The initial stats—$4.6 billion consolidated revenues, $650 million in operating income, etc.—isn’t exactly new information, but, as Dediu noted, it is certainly fascinating to see where Apple’s revenues came from and where they were spent during the quarter.

As for the diagram itself, note “Dev Payments” equals $1 billion—or each vertical pixel represents $50 million—and sources of revenue appear according to size. With this in mind, the diagram depicts iTunes (music, apps, software, and more) as having 7 percent of overall revenues, 10 percent cost of sales, and therefore 4 percent of total operating margin.

Dediu published a similar analysis of revenues earlier this week that showed Apple’s ‘break-even’ iTunes business as now making $2 billion a year.

The diagram clearly offers much interesting information, such as the visual comparison of iOS device revenues to Mac and other sources, but check out Asymco for an expanded three-year view of the data.

FTC: We use income earning auto affiliate links. More.

Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author