Apple already generates notable high-margin promoting gross sales on its gadgets, nevertheless it has vital alternatives to proceed rising its advert enterprise, a Wall Road analyst writes in a brand new observe to shoppers.
Patrick Seitz for Investor’s Enterprise Every day:
“We consider Apple promoting by itself apps is underappreciated,” Barclays analyst Tim Lengthy mentioned in a observe to shoppers Tuesday. “Most advert revenues are generated on the App Retailer, with some contribution from Information and Shares. This might develop to different apps like Maps, TV+, Podcasts, and so forth.”
Lengthy estimates that Apple generated $5.3 billion in promoting gross sales in 2022. He predicted that advert gross sales will rise 42% in 2023 to $7.5 billion. And he sees Apple’s world advert income hitting $19 billion by 2026.
“Over time, Apple may develop advert income by Apple Maps and Apple TV+, which we view as the 2 low-hanging fruits,” Lengthy mentioned. The corporate is more likely to develop its promoting attain to extra apps “within the coming months or quarters,” he added.
MacDailyNews Take: Clearly, there’s a lot headroom for Apple’s promoting enterprise going ahead.
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