Apple Inc (Nasdaq: AAPL) is reportedly turning to artificial intelligence to boost its ads revenue. Shares of the iPhone maker are up more than 1.0% at writing.
Apple’s new product is similar to Meta or Google’s offerings
Anonymous sources told Business Insider today that the multinational is testing an AI-powered ads product with a handful of advertisers.The said offering is reportedly similar to Advantage+ of Meta Platforms or Performance Max of Google. AAPL is yet to comment on the BI report on Monday.The news arrives only days after the Nasdaq-listed firm gave up on its long-standing plans of launching an electric car that Alex Kantrowitz of “Big Technology” said hints at a “cultural issue” within Apple Inc (read more).Wall Street currently has a consensus “overweight” rating on Apple stock that’s now down nearly 13% versus its year-to-date high in late January.
Apple does not breaks down advertising revenue
Note that the multinational could eventually choose to integrate artificial intelligence to other parts of its business like the Apple TV+ or Apple Maps as well.Last month, $AAPL reported its financial results for the first quarter that handily topped Street estimates (find out more).But the $2.66 trillion company based out of Cupertino, California does not reveal the revenue it generated out of advertising in any given quarter. That benefit, instead, is included in its services number that printed at a record $23.1 billion in Q1.Earlier in March, the European Commission announced a $1.95 billion fine on Apple Inc. for abusing its dominance in music streaming. Shares of the tech titan currently pay a dividend yield of over 0.5%.
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— Camus (@newstart_2024) March 4, 2024
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