Apple is reportedly testing an AI-powered ads product

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on Mar 11, 2024
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  • Apple is testing an AI-enabled ads product with a few advertisers.
  • $AAPL does not specify ads revenue in its quarterly reports.
  • Apple stock is currently down nearly 13% versus its YTD high.

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Apple Inc (NASDAQ: AAPL) is reportedly turning to artificial intelligence to boost its ads revenue. Shares of the iPhone maker are up more than 1.0% at writing.

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Apple’s new product is similar to Meta or Google’s offerings

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Anonymous sources told Business Insider today that the multinational is testing an AI-powered ads product with a handful of advertisers.

The said offering is reportedly similar to Advantage+ of Meta Platforms or Performance Max of Google. $AAPL is yet to comment on the BI report on Monday.

The news arrives only days after the Nasdaq-listed firm gave up on its long-standing plans of launching an electric car and shifted most of the employees working on that project to a team focused on its AI push.

Wall Street currently has a consensus “overweight” rating on Apple stock that’s now down nearly 13% versus its year-to-date high in late January.

Apple does not breaks down advertising revenue

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Note that the multinational could eventually choose to integrate artificial intelligence to other parts of its business like the Apple TV+ or Apple Maps as well.

Last month, $AAPL reported its financial results for the first quarter that handily topped Street estimates (find out more).

But the $2.66 trillion company based out of Cupertino, California does not reveal the revenue it generated out of advertising in any given quarter. That benefit, instead, is included in its services number that printed at a record $23.1 billion in Q1.

Earlier in March, the European Commission announced a $1.95 billion fine on Apple Inc for abusing its dominance in music streaming as Invezz reported here. Shares of the tech titan currently pay a dividend yield of over 0.5%.

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