Update: You can ignore this post. Nate over at The Digital Reader caught the flaw that went right by me. His post is correct.
If I choose a more conservative $9 average selling price and assuming a 70% share for the publisher then Apple’s iBooks generated about $1.3 billion in payments and grossed about $1.8 billion.
Third quarter consolidated revenues were $2.2 billion, a decrease of 8.8% as compared to the prior year.
The Retail segment, which consists of the Barnes & Noble bookstores and BN.com businesses, had revenues of $1.5 billion for the quarter, decreasing 10.3% over the prior year.
I’m neither a math whiz nor a Wall Street wonk.
But if I’m comparing the correct numbers, the iBookstore has already surpassed Barnes & Noble’s print business and will soon catch up to its overall business on a per-quarter basis.
And Apple doesn’t have to worry about storefronts or money-losing hardware.
There’s a half a billion iOS devices out there. And the iBookstore is doing this with friction — the iBooks app must be separately downloaded, just like apps from Amazon, Barnes & Noble, Kobo, Sony, and others. (Although to be fair, I’ve been told there’s an Apple nag dialog that pimps the iBooks software, so this really isn’t a fair fight, is it?)
Take this post with a dose of salt. And check the Comments in case someone tells me I’ve got the wrong numbers being compared.