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It's simple; Apple is aggressively expanding into service business space where many of it doesn't really make sense to make direct revenue while they're largely
by summerlight 6y ago
It's simple; Apple is aggressively expanding into service business space where many of it doesn't really make sense to make direct revenue while they're largely a underdog. Given that developing those services on par to FB/Google/Amazon's needs at least tens of billions of dollars, they cannot really build a sustainable business without generating actual revenue. And no one has developed a business model applicable to billion user bases for those "free" services other than advertising.
Of course, while it's possible that Apple can keep themselves away from those "free" services but it means that they also need to give up a part of their control on customer relationship. Since it is the core part of their long term strategy, I don't think they can easily give it up. I think they will eventually foray into the advertising business rather than giving up user control.
Here, the only major advantage of their services is platform control. The major disadvantage is their perception of privacy-friendly company, so their options on ad network level optimization are significantly limited. The only relevant ads service from Apple is app search ads because this is the only area they can get user information without privacy troubles; this clearly demonstrates their strong and weak points.
The only logical conclusion that can be derived from this situation is utilizing their platform control to "level the playground"; even if Apple cannot use the same user data, they can force others to give up. This will neutralize Apple's disadvantage while retaining their platform advantages, which likely give them some time to catch up their competitors in service businesses as well.