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Apple looks down on advertisements but takes billions from Google

Goldman estimates $9 billion of the company's fast-growing services segment comes from the search giant

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A customer compares the size of the new iPhone XS and iPhone XS Max at the Apple Store in Singapore September 21, 2018. Photo: Reuters

Shira Ovide | Bloomberg
What if everyone is wrong about Apple Inc’s most closely watched growth business? Investors have been obsessed with what Apple calls its “services” segment — a grab bag that includes the company’s cut of iPhone app sales; the AppleCare warranty programme for devices; and subscriptions for internet add-ons including Apple Music, iCloud digital file storage and perhaps soon a Netflix-like online video service and news subscriptions.

The idea in the investment community is that this fast-growing part of Apple’s business — services revenue reached $36 billion the last 12 months, up 28 per cent from a year earlier — is evidence

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First Published: Sep 30 2018 | 10:32 PM IST

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