Apple’s income from advertising could potentially increase by more than five times to US$11 billion yearly within the next six years, JP Morgan analyst Samik Chatterjee said, due to the roll out of streaming service Apple TV+ and its entry into digital services, reported Reuters.
Quoting Chatterjee, Reuters said that Apple could amass “the stellar growth” witnessed by Facebook and Google in recent years by leveraging the “millions of users” that search its App Store and Safari browser on a daily basis. Chatterjee added that Apple could potentially increase revenue by one-third annually, from about US$2 billion to US$11 billion in 2025. According to him, the advertising opportunity is “within Apple’s fingertips” but it is “hidden in plain sight and underappreciated by most”, as most investors are trying to point out the next bit frontier for services.
In March this year, Apple announced the Apple TV+, Apple News+, and Apple Arcade subscriptions, as well as its Apple Card, which is said to be “an innovative, new kind of credit card” designed to help customers lead a healthier financial life. The announcement signaled a shift away from Apple just being a smartphone brand. Months later in September, it rolled out the iPhone 11. Earlier this month, rolled out a global campaign for its noise-cancelling AirPods Pro. A large-scale poster of individuals with AirPod Prods on and grooving to the beat hit the London, Shanghai and Tokyo stores.
(Photo courtesy: Apple)