Now to Apple’s credit, within 24 hours, casino-type ads were paused, and some app categories had ads suspended, presumably while Apple rejigs the system. But there’s still every sign that Apple intends to re-rollout ads, albeit ‘better ads,’ into the App Store in the near future. This debacle has delayed, rather than dissuaded, the company from aggressively pursuing expanding ads across more of its products & platforms.
Growth at Any Cost
In the past half-decade, Apple has focused on aggressively growing its service revenue. Originally services consisted of iCloud storage in 2011, which expanded to Apple Music in 2015, Apple Arcade, TV+, & News+ in 2019, & most recently, Apple Fitness in 2020. Services are an ideal retention strategy that keeps people connected to the ecosystem while providing Apple with a continuous source of revenue amongst people’s intermittent iPad, Mac, and iPhone purchases. They can also become hardware agnostic, as some of Apple’s services can now be accessed on many Android and Microsoft devices, increasing the pool of potential customers.