According to the source , except profiting from the sale of devices, subscriptions have become an important component of Apple's business.
Restructuring the Apple service business
Eddy Cue, Apple's senior vice president in charge of services, is said to be trying to restructure the company's lucrative "services" business to focus more on broadcasting and advertising, the source said.
The roles of many of the top executives in this sector have been updated by Eddie Coe.
Citing the source , the report indicated that as part of the restructuring, Peter Stern, Apple's vice president of services, will not deal with advertising, and will instead focus on videos, iCloud and other service segments.
On the flip side, advertising vice president Todd Terrace is said to be taking on more responsibility, and has been reporting directly to Eddie Coe since the start of 2022.
Apparently Apple has identified broadcasting and advertising as two potential revenue growth prospects, with an individual familiar with the matter claiming that Apple's advertising business is now "large enough to live on its own".
Why did Apple take this step?
Apple's services brought impressive revenue and subscriber numbers, driving these moves.
According to 9to5Mac, search ads in the App Store, Apple's only source of advertising, rose 238% to $3.7 billion in 2021 and are expected to reach $5.5 billion by the end of this year.
According to the survey, changes to Apple's privacy standards, such as app tracking transparency, have prompted more developers to invest in search ads in the App Store.
Apple and sports offers
Apple Insider reports that the iPhone is also ramping up its sports offerings as part of its streaming strategy. The tech giant has added "Friday Night Baseball" to the streaming service and is trying to win the rights to the "NFL Sunday Ticket".
Apple is also seeking the rights to broadcast NBA games on its Apple TV + platform.
Meanwhile, Mac Rumors famous that sports content will attract new viewership for Apple TV+, which Apple has been building since its 2019 launch.
Apple still has a limited amount of original content compared to other streaming services, and it can't attract the same subscriber numbers as Hulu, Netflix and Disney+.
Apple TV +, iCloud, Apple Fitness +, Apple News +, Apple Music, App Store, Apple Care +, Apple Arcade, Apple Pay and more are included in the category of services that has grown rapidly over the past several years.
Apple has made a regular profit from the services over the years. The sector generated $19.8 billion in the moment quarter of 2022, a year-on-year increase of $17 billion.
Separately, it was reported that Apple is also working on new services, such as a potential "buy now, pay later" banking service and Instacart-style delivery service with a focus on nutrition.