Apple is restructuring its services division — and also focusing more on advertising

Apple is making major changes to its services team, which has brought more and more money to the company in recent years. Services boss Eddy Cue, longtime Apple manager and senior vice president for services, is to focus more on the streaming and advertising business in the future, according to a report by the business side BusinessInsiderwhich relies on internal sources.

Cue currently has a gigantic portfolio: Not only iCloud, all content services (Music, TV+, News+, Books, Arcade, Fitness+, iTunes Store) and the growing advertising department are sorted under it, but also the App Store, Apple Pay and the Billions in revenue through the search partnership with Google. Even AppleCare+, Apple’s warranty extension, runs under “Services” at the company. Most recently, the entire division had grown by a good 17 percent to almost 20 billion US dollars in sales in the quarter.

The increased focus on streaming and advertising is attributed to the fact that the group probably expects the most revenue growth here. Cue’s direct report, Vice President of Services Peter Stern, will no longer be directly concerned with the advertising business and will instead focus entirely on streaming and related services. Todd Teresi, already vice president of advertising, will be given more responsibility and will report directly to Cue in early 2022. The business is now so big that it should become “independent”.

It’s interesting that Apple sees an interesting business in advertising. The group puts massive pressure on advertising-financed competitors like Meta by restricting the tracking options of apps, for example. But their own business with advertising is obviously growing significantly. Above all, this includes the search ads placed in the App Store, which have now proven to be the best way for app providers to find new users. Apple can rely on first-party data that the company collects itself.

But there may also be a combination of streaming and advertising – Apple could also advertise in new TV formats, films and sports broadcasts that have already started in English-speaking countries. At the moment, however, Apple TV+, into which billions have flowed, is a negative business. At 5 euros a month, the service is significantly cheaper than the competition, but still has significantly fewer subscribers than Netflix, Disney+ or Hulu in the USA. Among other things, Apple uses new package offers to increase sales.


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