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by eesmith
416 days ago
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I'm saying that <1% is not the right way to look at things, but the real point is "You can both pay for a service and be the product." You won't call them an ad company until it's 50% of revenue. I understand that. But if Alphabet were to buy UnitedHealth Group, so that Alphabet's ad revenue were under 50%, Alphabet would still be an ad company. The newspaper which I subscribe to is also an ad company, because they sell ad space. The radio station I listen to most is not also an ad company, because it's a volunteer-run, listener-funded station. My company is not an ad company because it only gets revenue from product sales and consulting services. |
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Apple has never been an "ad company". They sell computers, software, subscriptions, and they take a cut of the App Store revenue. Ads are a tiny part of their revenue now. Doesn't make them an "ad company" like Google, where ads are their primary revenue source.
I bought a lot of Apple products. They made their money from the high margin in the purchase price, not ad views which I have never seen anywhere on my Macs and maybe seen a couple of the ads on the app store on my phone. They earned about 1 cent on those two ad views, and thousands of dollars from the hardware sales and iCloud subscription.