The news: Apple’s recent earnings call revealed more than record hardware sales—it also previewed the scale of a closed advertising system built on 2.5 billion active devices. 

Each device represents a logged-in user inside Apple’s ecosystem—spanning App Store search, Apple News, Apple TV, Maps, and payments—where identity and commerce stay glued on Apple’s rails.

The company brought in a net income of $42 billion on revenues of $143.8 billion, an all-time high. 

• Revenues rose 16% YoY, driven mostly by the iPhone 17 lineup and record demand across every geography.
• Sales surged 38% YoY in Greater China despite intense competition from local brands. 
• The Americas generated $58.5 billion, up from $52.6 billion last year, and Europe reached $38.1 billion, up from $33.8 billion. 

Why it matters: Apple’s ad business is expanding in lockstep with its hardware dominance. The company led the global smartphone market in 2025 with a 20% market share and 10% YoY growth, per Counterpoint. 

We forecast Apple’s US ad revenues will reach $8.53 billion in 2026 and climb 11% YoY to $9.47 billion in 2027. Growth is moderating, but Apple’s base is expanding steadily, indicating a maturing platform.

Zooming in: Apple’s audience may be smaller than Google Play’s, but it generates outsized revenues relative to download share—a reminder that value beats volume. 

As privacy rules curb third-party tracking, Apple’s first-party data and hardware control deepen its hold on high-intent demand. However, expected hardware shortages in Q2 could slow momentum for the entire industry.

Implications for brands: More devices mean more monetizable surfaces. Apple Ads has evolved from a narrow App Store search product into a scaled performance channel embedded in moments of search, download, and subscription, per WebProNews.

• Brands should consider making Apple Ads central to mobile acquisition and retention strategies.
• Align creative, product pages, and paid placements within the App Store, and prepare for expanded inventory across services, connected TV (CTV), and new devices like foldables.