there's an apple called "inc", they make devices and services. they could make more money by showing ads. a smart lady named laura says they could double their money. they have lots of people using their things and that could help make even more money. it's like a game where they make more points by having more people play. Read from source...
1. Inconsistency: The article claims that Apple has a massive user base, and the same base can drive the company's advertising revenue growth. However, the article does not substantiate how this base would suddenly translate into higher ad revenue.
2. Bias: The article seems to favor the idea of doubling Apple's revenue growth through advertising, ignoring other possible growth drivers like Apple's services, hardware, or new innovative projects.
3. Irrational Arguments: The article argues that Apple could enhance revenue by entering high-margin advertising. However, it does not consider the intense competition that Apple would face from well-established players in the digital advertising space.
4. Emotional Behavior: The author seems too excited about the possibility of Apple doubling its revenue growth through advertising, ignoring the risks and potential downsides of the strategy. The article does not discuss any counterarguments or different perspectives on the matter.
5. Incomplete Analysis: The article focuses solely on the advertising revenue growth opportunity, ignoring other factors like Apple's commitment to user privacy and data security, the possibility of regulatory challenges, and the company's overall strategy.
Positive
Reasoning: The article speaks about Apple's potential to build a robust advertising business. Needham analyst Laura Martin sees advertising as a key driver for doubling Apple's revenue growth. Martin's investment thesis revolves around Apple's massive installed base of over 1.25 billion of the wealthiest consumers globally, using more than 2.2 billion active devices as of the end of 2023. This loyal user base represents a vast reservoir of untapped potential. Therefore, the sentiment is Positive.
1. Apple has a significant boost in revenue trajectory by entering high-margin advertising. Using its massive user base, Apple can build a robust advertising business.
Risks: It may face competition from other tech companies like Amazon and Google.
2. Apple's loyal user base, which engages with Apple products for an average of five hours daily, represents a vast reservoir of untapped potential. By increasing the average revenue per user and reducing churn, Apple can maximize this potential.
Risks: The company may face difficulties in upselling additional devices and services to its users.
3. Apple could focus on increasing customer engagement by bundling family plans and offering trade-in discounts for older iPhones, thus solidifying user loyalty and lowering entry barriers.
Risks: The company may need to ensure that these strategies do not adversely affect customer satisfaction and retention rates.
Investors should keep a close eye on Appleās strategic moves in this direction, as they could herald a new era of profitability for the company.