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Apple Maps, Google Maps, Uber and other Apps on iPhone screen
Travel apps Google Maps, Apple Maps, and Uber on the screen of an iPhone (Getty Images)
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Apple is planning to put advertising in the Maps app by 2026

Boosting its Services division with a few extra ad dollars sounds nice — but it could drive users away.

Millie Giles

Apple is well known for its iconic ads. Now, the same thing that attracted many to the company in the first place could be what deters them from its products. According to a report from Bloomberg’s Mark Gurman published on Sunday, Apple is moving ahead with plans to put ads in its Maps app.

Like features already incorporated into rival Google Maps and other navigation services, Apple plans to sell prominent space within the app’s search results to restaurants and other businesses. Per Gurman, this will be similar to search ads in the App Store, where developers can buy promoted slots for their software based on queries. Apple also intends to employ AI for its sponsored Maps suggestions to ensure “relevant and useful” results.

Think similar

After years of eschewing ads within its offerings, Apple seems increasingly enamored by in-app marketing — perhaps as a way to bolster its all-important Services division, which keeps the Apple machine ticking along between iPhone purchases. Last year, the segment brought in ~$96 billion in revenue, roughly a quarter of the company’s total.

Apple Services
Sherwood News

Home to the App Store, Apple Music, Apple TV+, iCloud, advertising, and more, Apple’s Services revenue has grown fivefold in the past decade alone. Meanwhile, per eMarketer’s estimates, Apple’s ad revenue totaled $6.5 billion last year, or 7% of its Services total.

Though Apple has historically played down its desire to move further into the ad space, in part due to its privacy-conscious data collection terms, “Apple Ads” may now be too fruitful an option for the company not to squeeze for juice (à la Walmart and Amazon), with advertising typically carrying very healthy profit margins.

Still, Apple could face a backlash if it plugs promos too strongly: users have fought against ads featuring in iOS settings; in June, many iPhone customers bemoaned Apple Wallet putting out a push notification to promote “F1: The Movie”; and we all remember that U2 album.

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Driverless Waymo struck a child near school in California

A Google Waymo struck a child near a Santa Monica elementary school during morning drop-off last week, as self-driving cars by Waymo, Tesla, and others continue their expansion across the country. In a blog post, Waymo said the fully driverless car detected the child as they emerged from behind a parked SUV, braked sharply, and reduced speed from approximately 17 mph to under 6 mph before striking the child. The child suffered minor injuries and walked away.

The company reported the incident to the National Highway Traffic Safety Administration, which is currently investigating, adding fresh scrutiny to how robotaxis perform in the wild.

The company reported the incident to the National Highway Traffic Safety Administration, which is currently investigating, adding fresh scrutiny to how robotaxis perform in the wild.

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Digging into Microsoft’s cloud backlog

Microsoft’s Azure cloud computing unit is seeing huge demand. In yesterday’s second-quarter earnings call, Microsoft CFO Amy Hood said the company’s commercial bookings increased 230% thanks to large commitments from OpenAI and Anthropic and healthy demand for its Azure cloud computing platform.

Hood said that the company’s “remaining performance obligations” (RPO) ballooned to a staggering $625 billion, up 110% from the same period last year. How long will it take for Microsoft to fulfill these booked services? Hood said the weighted average duration was “approximately two and a half years,” but a quarter of that will be recognized in revenue in the next 12 months.

Shares of Microsoft tanked today, down over 11%, despite the strong beat on revenue and earnings. Investors may be concerned that while huge, that extra demand was coming only from OpenAI, an issue that Oracle recently experienced.

But Hood said the non-OpenAI RPO still grew 28% year on year, which reflects “ongoing broad customer demand across the portfolio.”

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Meta and Tesla are funding the future with their core businesses — but only one of them is still growing

The two tech giants, on back-to-back earnings calls, made it sound like they’re selling the same AI-powered future. But the picture of the underlying businesses, and how they’re using AI to furnish current sales, couldn’t be more different.

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