Apple is reportedly planning to put ads in more apps on iPhones in an expansion of its advertising business.
Analysts from Needham wrote in an Aug. 3 note that they believe Apple's next big revenue stream is in advertising.
The analysts also said they believe Apple is in the early stages of building a new mobile advertising platform. They said they have observed a"notable uptick" in the company's recruiting efforts for its Ad Platform, and that it was highly visible at the Cannes Lions advertising festival in June. Analysts from Bernstein said Apple's Services business, which is principally driven by advertising and the App Store, has seen a decelerated growth rate for four consecutive quarters as the App Store has endured a shift in consumer spending.
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