• Silicon.com, Thursday, December 14, 2006 11:01 AM

Apple Computer yesterday denied claims by Forrester Research that revenue from its iTunes Music Store is slowing. The research firm did an analysis of more 2,700 U.S. iTunes debit and credit-card transactions between April 2004 and June 2006, saying U.S. revenue fell 65% during the first six months of 2006.

"The conclusion that iTunes sales are slowing is simply incorrect," an Apple representative said, adding that 1.5 billion songs have been purchased from iTunes, making it the fourth-largest music retailer in the U.S., with 6% of the country's total music sales.

Silicon.com reports that Apple has indeed sold 1 billion songs this year, but that number includes its 21 music stores across the globe. In its report, Forrester said it was "too soon" to know if the massive decline was seasonal or if buyers have had enough of digital rights management-protected music. In 2005, iTunes revenue fell after Christmas, but rose again in May.

Read the whole story at Silicon.com »