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Running the Numbers on the Apple Download Empire

Analyst Horace Dediu has examined Apple’s software and service business and found that if it were its own company, it would rank 130th in the Fortune 500 — above pharmaceutical giant Eli Lilly. Dediu estimates that Apple gave up $350 million in revenue in the last quarter from making Mavericks and iWork free. Despite that, Apple is bringing in more revenue than ever from iTunes and the App Store, with gross revenues of nearly $7 billion per quarter.

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