Don't let Apple tell you it isn't in the advertising business and that you're not a product being profiled, packaged and sold for profit as part of its "services" business.
Apple said:Advertising & Privacy
... Ads that are delivered by Apple’s advertising platform may appear in the App Store on iOS, Apple News, and Stocks.
The following contextual information may be used to serve ads to you:
Additionally, to ensure ads are relevant, Apple’s advertising platform creates groups of people, called segments, who share similar characteristics and uses these groups for delivering targeted ads. Information about you is used to determine which segments you are assigned to, and thus, which ads you receive. To protect your privacy, your information is used to place you into segments of at least 5,000 people.
- Device Information: Your keyboard language settings, device type, OS version, mobile carrier, and connection type.
- Device Location: If the Location-Based Apple Ads system service is enabled, then your location may be used to serve you geographically relevant ads. Your device location is not stored by Apple’s advertising platform and profiles are not constructed from this information.
- Searches in the App Store on iOS: When you search in the App Store on iOS, your query may be used to serve you a relevant Search Ad.
- Apple News and Stocks: The type of article you read is used to select appropriate ads.
In Apple News and Stocks, the topics and publications associated with your News identifier, and the publications you allow to send you notifications are used to assign you to segments. No segments are created from search terms in the App Store.
In the App Store on iOS, Apple News, and Stocks, the following information may also be used to assign you to segments:
- Account Information: Your name, address, age, and devices registered to your account. Information such as your first name in your Apple ID registration page, or salutation in your iTunes Account may be used to derive your gender.
- Downloads: The music, movies, books, TV shows, and apps you download.
- Activities in Other Apps: App developers, subject to their own privacy policies and applicable laws, may provide information regarding your in-app purchases and activities such as game level completion.
- Advertising: Your interaction with advertising delivered by Apple’s advertising platform.
- Other Segments: For specific advertising campaigns, advertisers may match information they have about users with Apple’s information to create segments, which must contain at least 5,000 people. Advertisers can use an Advertising Identifier, or other information they have about users, such as a phone number or email to match users to segments on Apple’s advertising platform. During the match process, these identifiers are obscured to limit personally identifiable information being disclosed. To choose which segments they match users to, Advertisers may use information they have from interactions with users. This information is acquired and used subject to the Advertisers’ own privacy policies....
Haymarket Media Group said:Apple signals greater role for ad revenue as iPhone sales drop 15%
... Revenue from the iPhone – the company’s main revenue stream – declined 15% year on year to $51.98bn (£39.66bn) for the quarter ending 29 December 2018 (Apple's fiscal 2019 first quarter).
However, total quarterly revenue from all other Apple services grew 19% to $10.88bn. This includes subscriptions to Apple Music and Apple Pay, but also search ads on the App Store. Apple is planning on doubling its services revenue to more than $100bn by 2020 (up from $41bn for 2018).
In a call with investors, the company’s chief financial officer, Luca Maestri, pointed to a growing percentage of Apple users paying for more than one service, as well as "an advertising business in our App Store".
Mentioning advertising in a dialogue with investors is significant for Apple, which has prided itself in selling hardware rather than relying on ads like Google and Facebook.
Apple does not break down revenue for search ads, but it is reportedly worth $500m and set to grow to $2bn by next year.