Apple Computer Inc.’s music revenues should reach US$6 billion by 2007, new research claims.
Independent analysis from Generator Solutions Ltd. seems to show Apple’s music initiatives could double the company’s size in just years. $2 billion of the 2007 prediction comes from iTunes song sales, the rest stems from anticipated iPod sales.
“Apple will need to introduce many new products to maintain momentum. If they can, our analysis shows that music alone could double company revenues within a few years,” said Andrew Sheehy, director of research at Generator.
The forecast includes no business predictions based on the iPod ‘halo effect’, and no revenues from potential additions of other media (such as video) to iTunes, for example.
Reality could exceed predictions
“Although the forecast may look optimistic, we’ve actually excluded several important factors all of which are capable of increasing company revenues still further,” Sheehy explained.
“We’re simply basing future growth rates on what has been achieved before in directly comparable markets. So we know this is doable. Whether it actually happens on not is largely up to Apple,” he explained.
Apple may also benefit should it elect to introduce a home entertainment brand in future: “All the major players in the digital home space are announcing new hardware and software products aimed at the living room. We think that Apple has been working on this area for some time and expect to see product announcements in this area in the next year or so.”
The forecast anticipates music-related revenues of $9 billion by 2013.