Services != Advertisement. Advertisement is about collecting data from potential customers and offering that to advertisers. Services in the context of Apple is

Services != Advertisement. Advertisement is about collecting data from potential customers and offering that to advertisers. Services in the context of Apple is about selling the hardware hoping to capitalize on the ecosystem of their services (music, news, icloud, etc). In extreme cases such as Sony who sells PlayStations ("hardware") at a loss hoping to recover it from game sales ("services"). Apple is more like Sony than Google.