Apple to develop ads empire as its privacy policy weakens rivals

By Al Mayadeen English
Source: Agencies
21 Aug 2022 17:05

Apple restructures its internal division in charge of earning money from applications, media, and other "soft" items in order to focus more on internal profit rather than declining hardware profits.

Apple started to construct its own ads empire.

Apple started to construct its own ads empire at the same time as its iPhone privacy crackdown weakened important ad-supported rivals. Despite user acceptance, Apple's decision to restrict how applications track user activity crippled competitors like Meta in the midst of a wider decline in the online advertising market.

Apple has long argued that its devices had a privacy and security edge over rivals like Google's Android and Microsoft's Windows. Apple's simultaneous commercial expansion and privacy measures, however, have sparked controversy and may catch the eye of antitrust regulators.

According to Bloomberg, Apple intends to drastically increase the amount of advertising it runs on consumers' devices. Ads would be added to more of Apple's own apps for iPhones and iPads, including Apple Maps, as part of the expansion.

In order to protect its business as growth in hardware sales slows, the corporation has apparently started to restructure its services team; the internal division in charge of earning money from applications, media, and other "soft" items.

Nearly 25% of Apple's quarterly income, i.e. $19.6 billion, came from services including advertising, the App Store, Apple Music, iCloud, Apple News, Apple TV+, and Apple Pay last quarter.

Only 13% of Apple's total income in the same period five years earlier came from services.

Apple does not disclose the percentage of its services income that comes from advertising, but according to a Bloomberg report, the corporation presently generates around $4 billion in ad revenue yearly. On the other hand, analysts predict that Apple's advertising revenue may exceed $6 billion by 2025.