Bank of America analysts are the latest on Wall Street to suggest the Apple could earn billions from advertising in Maps and Apple TV+ streaming.
Eric J. Savitz for Barron’s:
In a research note Thursday, BofA Global Research analyst Wamsi Mohan explores the potential for Apple to build a more substantial ad business. He estimates that Apple in the September 2022 fiscal year will rake in about $5.3 billion in revenue from search ads in the App Store, and he sees the total reaching $9.8 billion in fiscal year 2024.
But that’s just the start: Mohan says Apple can generate additional revenue by creating its own ad platform, which in theory would allow other mobile apps on the iOS platform to sell ads. He also thinks the company could sell ads on Apple Maps and offer an ad-supported version of the Apple TV+ streaming service.
Mohan asserts that Apple’s biggest asset is its large installed base—there are about 1.8 billion devices in around the world, which he sees as potential conduits for advertisers to reach a large population. By moving beyond the App Store, Apple could build a $20 billion advertising business by 2026, he estimates.