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Apple Inc. (NASDAQ:AAPL) “Ad Blockers” Could Really Sting Google Inc (NASDAQ:GOOGL)

Tim_Cook Apple Inc music

Apple Inc. has decided to block ads on its iPads and iPhones. This has become a reason of worry for the publishers, resulting in a tension between the firm and its neighbors in the Silicon Valley. Apple is expected to release the next version of its mobile OS next month, allowing users to block the ads in the Safari browser with the help of specific apps, says a report from Wall Street Journal.

Tim_Cook Apple Inc music

Google to hurt most

Apple iPad and iPhone are being used by hundreds of millions of people, and if they get access to ad blockers, it will pose a serious threat to the mobile marketing business, which at present stands at $70bn annually, says the report. Apple users are a more lucrative audience for publishers as iOS devices are priced much higher than the Android devices. Hence, they become much more desirable to advertisers.

For many publishers and tech firms, their mobile audience is growing, earning big revenue from them. If their ads will be seen by a smaller audience then marketers will likely lose a large amount of revenue. Apple’s decision to block ads would hurt rival Google the most as it is the biggest earned from the Internet ads.

Google Inc  Android and Apple’s iOS are the two leading operating systems. Once ad blockers come to the iOS, more and more users will surely make use of the app. Sean Blanchfield, the CEO of an ad block combating firm called PageFair told the WSJ, “Apple is going to create a massive consumer appetite for blocking ads.”

Apple car to compete with Google?

Apart from mobile, Apple Inc. may also be planning compete with Google on another front i.e. a smart car. However, coming up with a car (smart car) is not as easy as it is with the phones.

Apple seems interested in the self-driving cars, and there are several evidences supporting this, like hiring auto experts and acquiring related patents. If Apple goes ahead with a car then it is getting involved in something that has a long gestation period, and could take decades to turn profitable, but it is necessary also.

Going forward, technology will radically transform the auto sector. And, participating in this change becomes necessary for Apple Inc. if it is interested in retaining its huge size.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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