Apple To Expand Advertisements In iPhone Apps - InvestingChannel

Apple To Expand Advertisements In iPhone Apps

According to multiple media reports, %Apple ($AAPL) is planning to expand advertising to more first-party apps on the %iPhone.

The consumer electronics giant generates about $4 billion U.S. in annual revenue from its advertising business but wants to grow the unit by “double digits” in coming years, and is targeting iPhone apps to expand its advertising.

Apple already shows advertisements in some of its apps, such as %AppleNews and Stocks.

It also recently announced plans to place more ads in its App Store.

Now, the Cupertino, California-based company is planning to add advertising to %AppleMaps as well as the online stores for its podcasts and electronic books.

At the same time, Apple has been cracking down on other companies that push advertisements to its iPhone.

Apple has issued an update to iPhone that contains a pop-up message asking users if they want to allow apps on their smartphone to include advertisements.

Apple’s privacy feature, which it calls “App Tracking Transparency,” has upended many mobile advertisements. The new feature has caused major headaches for companies such as Facebook parent %MetaPlatforms ($META) and interactive fitness concern %Peloton ($PTON).

Some analysts who cover Apple have speculated that the company is developing a new mobile advertising platform.

In Apple’s most recent earnings call, chief executive Tim Cook said the company’s advertising business is a great way to promote apps among iPhone users.

Apple stock is down 5% this year and trading at $173.19 U.S. per share.

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