Apple wants to put an extra punch in services. Eddy Cue would be maneuvering to restructure this sector at Apple, which represents the second source of income for the manufacturer behind the iPhone (but ahead of everything else), with nearly 20 billion dollars earned in the first quarter (+ 17%) and 825 million paying subscribers.
The vice president senior services would seek to reorganize the management structure of this very lucrative branch of the company, just to push harder on streaming and advertising. Business Insider reports that Eddy Cue has already placed some of his pawns in strategic places: Peter Stern, VP of services (a notch below his boss, therefore), now has more time to take charge of the sports aspect of the Apple’s business.
Since September 2020, Stern has already overseen the video, News, books, iCloud, Fitness+ and Apple One (😅) activities within the box. He would have been discharged from advertising, which he also took care of. With the launch of Friday night baseball and the rights to broadcast US football that would have fallen into the hands of Apple, we understand that he wanted to make some space in his agenda.
For $ 2.5 billion, Apple would have won the rights to American football
It is Todd Teresi who would have taken over the responsibilities that Stern exercised in publicity. This vice-president has been responsible for the advertising business at Apple for more than ten years (he was notably at the head of the defunct iAd management), so it seemed quite logical that it should be his. According to a site source, “ service portfolio [chez Apple] is too big now, with too many growing segments. The advertising business is big enough to live on its own “.
Advertising would indeed experience exceptional growth at Apple. According to Omdia, the main source of this activity, Search Ads in the App Store, recorded an increase in its turnover of +238% between 2020 and 2021. It would have earned $ 3.7 billion in revenue l last year, and for 2022 this should reach 5.5 billion.