IT giants will start introducing advertising banners into their software. There are several reasons for this.
For several years, the Chinese Xiaomi has been pursuing a similar policy. For almost the same amount of time, instructions for disabling ads in brand devices have been circulating on the Internet. Why did major brands decide to introduce this practice.
Decrease in income from hardware and paid software
Apple has not received the desired revenue from the iPhone for a long time. In 2015, Cupertino smartphones brought the company 70% of the total share of revenue, while in 2020 this figure dropped to 50%. Device sales are also falling, dropping from 230 million to 196 million over the period.
At the same time, the cost of the iPhone is growing. This was facilitated by the COVID-19 pandemic, the shortage of semiconductor components, the rise in energy prices and the general global crisis. According to analysts, the production of one new smartphone has increased by almost $20-30 compared to the previous model. It is assumed that the iPhone 14 is waiting for the same fate. To recover costs, Apple will have to increase the price tag on new devices. This, in turn, can negatively affect sales.
Microsoft is facing a similar issue. 2010 was the last year in which Windows generated the lion's share of the brand's total revenue. Since then, operating system sales have stagnated. Added to this are the average sales of the Xbox console and the meager sale of other gadgets.
Growing revenue from services and advertising
Good earnings for companies are made by services and advertising. So, Cupertinians have 20% of the total revenue from services, and Microsoft is increasingly relying on services and cloud technologies.
The example of Google is notable here, providing almost all the software for free, but at the same time making $150 billion annually on advertising. Other companies have realized that it is easier to collect information about users and show them native ads than to encourage them to subscribe or try to push them to purchase a device.
The advertising model shows high efficiency in companies that have their own platforms - Apple and Microsoft are included in this list. Corporations have the ability to collect a huge array of information about users who use their products for a long time. Recently, Apple completely limited the ability of third-party programs to spy on users, thereby eliminating competition in this matter.
How will all this affect ordinary users?
Apparently, advertising will appear where it was not before. A page in Word, applications with podcasts, a standard player, a calendar, system settings - here and not only users will see advertising banners and inserts. Unfortunately, this is the price of using shareware services.
For several years, the Chinese Xiaomi has been pursuing a similar policy. For almost the same amount of time, instructions for disabling ads in brand devices have been circulating on the Internet. Why did major brands decide to introduce this practice.
Decrease in income from hardware and paid software
Apple has not received the desired revenue from the iPhone for a long time. In 2015, Cupertino smartphones brought the company 70% of the total share of revenue, while in 2020 this figure dropped to 50%. Device sales are also falling, dropping from 230 million to 196 million over the period.
At the same time, the cost of the iPhone is growing. This was facilitated by the COVID-19 pandemic, the shortage of semiconductor components, the rise in energy prices and the general global crisis. According to analysts, the production of one new smartphone has increased by almost $20-30 compared to the previous model. It is assumed that the iPhone 14 is waiting for the same fate. To recover costs, Apple will have to increase the price tag on new devices. This, in turn, can negatively affect sales.
Microsoft is facing a similar issue. 2010 was the last year in which Windows generated the lion's share of the brand's total revenue. Since then, operating system sales have stagnated. Added to this are the average sales of the Xbox console and the meager sale of other gadgets.
Growing revenue from services and advertising
Good earnings for companies are made by services and advertising. So, Cupertinians have 20% of the total revenue from services, and Microsoft is increasingly relying on services and cloud technologies.
The example of Google is notable here, providing almost all the software for free, but at the same time making $150 billion annually on advertising. Other companies have realized that it is easier to collect information about users and show them native ads than to encourage them to subscribe or try to push them to purchase a device.
The advertising model shows high efficiency in companies that have their own platforms - Apple and Microsoft are included in this list. Corporations have the ability to collect a huge array of information about users who use their products for a long time. Recently, Apple completely limited the ability of third-party programs to spy on users, thereby eliminating competition in this matter.
How will all this affect ordinary users?
Apparently, advertising will appear where it was not before. A page in Word, applications with podcasts, a standard player, a calendar, system settings - here and not only users will see advertising banners and inserts. Unfortunately, this is the price of using shareware services.
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