Does iTunes cost Apple $1bn a year to run?

Research firm Asymco has been digging into Apple's numbers in an effort to understand how much it costs to run iTunes, including the App Store. It's a long and statty post, but the conclusion is that the store's operating budget is nearing $1 billion a year. This is based on estimates of how much Apple is making from app and music sales, versus the costs of licensing and revenue shares, and Apple's statement that its stores run at break-even. The obvious (and admitted) omission is content other than apps and music – TV shows, films and e-books.Source:Asymco