Apple generated $1.9 billion in revenues from downloads through iTunes in 2007, a report claims.

US music industry magazine, Billboard, has been assessing Apple's recent news that it has surpassed four billion music downloads through iTunes.

Billboard concludes that iTunes is a profitable business for Apple, and estimate it sold 1.7 billion downloads in 2007, 940 million in the US the rest elsewhere. The magazine speculates that this equates to $1.9 billion at a 30 per cent profit margin.

Apple's own financial statements bear this estimate out.