In recent years, Apple has been relying heavily on these services such as Apple Music, iCloud, Arcade or Apple TV+. the latter has experienced quite impressive growth in recent months. But new reports show the Apple brand may only be at the start of its business.
She who boasts to anyone who wants to hear her attachment to confidentiality could go closer to a world that everything opposes these principles: advertising. While the latter will make its arrival in the App Store in the coming weeks, Apple could eventually extend this advertising to our phones.
As a reminder, at the launch of Apple Services in the sense that we hear today, the Apple brand hoped to be able to generate 50 billion dollars per year. Today the latest financial reports from the Cupertino company show that the Californian company has more than succeeded, posting around 80 billion dollars in revenue for the year 2022.
Advertising: Apple’s missing treasure
But the latest report from SeekingAlpha estimates that the firm is losing almost 30 billion per quarter. By growing its part dedicated to advertisements, the apple brand could still bring in more cash. Very good news for the brand which is under the yoke of several court decisions, in particular because of its monopoly situation with regard to the App Store or its services precisely like Apple Music.
For analyst Laura Martin, who works for the bank Needham & Co, the development of advertising at Apple is the right thing to do. She takes in particular the example of Amazon, which also recently opened up to advertising. The figures that followed showed that it was the right decision to make.
The part dedicated to advertising at Amazon has gone from $4 billion in revenue in 2018 to nearly $37 billion over the past year. But then faced with so much money, what can the Apple do?
The latter has indeed placed itself as a great defender of the confidentiality and personal data of users. The Apple brand cannot turn around on this point, it would scare away too many customers and tarnish the brand’s reputation.
Apple: to be its own advertising agency?
But Apple could find a solution by becoming a “demand site platform” DSP. It would then buy advertisements before reselling them to a targeted audience, while respecting its own criteria of respect for privacy. For Laura Martin, this is the ideal solution for Apple, because it would fit perfectly with the history of the apple brand.
User data would only be used within the famous “ecosystem” of Apple, as is already the case today. Apple would take advantage of its technical knowledge to ensure the necessary security and avoid data leaks, while being able to take advantage of its audience to make it a prime target for advertisers.