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Apple sells some ads yes. But it’s a tiny fraction of their revenue. Would Google or Meta go bankrupt if they stopped selling ads? Yes. Apple wouldn’t.
by baxtr 9mo ago
Apple sells some ads yes. But it’s a tiny fraction of their revenue.
Would Google or Meta go bankrupt if they stopped selling ads? Yes. Apple wouldn’t.
- bigyabai 9mo agoApple would go bankrupt without US protectionist policy propping up their service revenue. That's pretty bad. Maybe not "reliant on ad monopoly" bad, but pretty close.
- porcoda 9mo agoIn their revenue report this week out of $140B, services made up 30B. 140B-30B = 110B. Thats pretty far from bankruptcy.
- baxtr 9mo agoAnd that was just one quarter…
- bigyabai 9mo agoRun 12 quarters, for all I care. Service revenue accounts for more than 50% of Apple's YoY revenue growth: https://www.statista.com/chart/14629/apple-services-revenue/ https://www.statista.com/chart/14629/apple-services-revenue/ Hardware sales aren't picking up the slack, and advertisement revenue is also following a growth trend. Apple's stock would indeed be cooked if they went balls-out against the government that guarantees them access to cheap hardware and software that has been declared illegally anti competitive by foreign sovereigns. Apple needs this.
- manuelabeledo 9mo agoElaborate? Financial results say otherwise.
- nozzlegear 9mo agoThat seems like a stretch. Even in Europe where people can choose to use different app stores, few people actually do. So few, in fact, that one of the alternative app stores recently shut down. Have you considered that people just like Apple's products and services?
- avazhi 9mo agoWhat does whether they’d go bankrupt or not have to do with whether they’re an ad company? They sell third party ads: companies unaffiliated with Apple pay Apple to advertise on Apple platforms. They’re an ad company. Just because it’s currently a small slice of their total revenue doesn’t make it untrue.
- baxtr 9mo agoI mean if you don’t care about details that’s fine I guess. Let’s call any company that sells and/or buys any amount of ads an "ad company". Let’s put them all into one bucket and judge. That’s super valuable.
- anon7000 9mo agoWhat matters is that the parent comment said “Apple is an ad company now,” as if that negated all the privacy and security stuff they do. Making some cash on ads doesn’t have to rely on targeted tracking. That only matters if ads are an existential part of your business, and without huge ad revenue growth, your company is dead.
- manuelabeledo 9mo agoI guess it’s also a financial company, since they have a branded credit card?
- raw_anon_1111 9mo agoAs long as you don’t count the $25 billion that Apple gets from Google.
- mediumsmart 9mo agoI was wondering why Apple bought an identity clone patent that would wreck targeted ads and never used it. Maybe it’s a $25 billion insurance policy.
- JKCalhoun 9mo agoAre you suggesting that is what is keeping Apple afloat?
- raw_anon_1111 9mo agoNo. But guess how much their stock would drop if one quarter they lost 20% of their profit?
- JKCalhoun 9mo agoNo doubt.