Apple Inc. (AAPL): Here Comes the iRadio

Asymco’s Horace Dediu estimates that Apple has recently departed from the break-even model and that iTunes and software (which were recently bundled together in Apple’s segment reporting restructuring) now generate $2 billion in operating income annually. Most of that positive operating income is generated from Apple’s first-party software offerings and not from music and apps (which are the bulk of iTunes sales).

The point of an iRadio service would not be to pad the bottom line; it would be an additional complementary service offering that could be integrated into devices to boost sales. Investors may only be a few months away from finding out for sure.

The article Here Comes Apple’s iRadio originally appeared on and is written by Evan Niu, CFA.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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