Apple’s latest 10-K form acknowledges some additional App Store risks and also shows that advertising is now the most powerful revenue driver for the company’s services business.In a note to investors seen by AppleInsider, Morgan Stanley analyst Katy Huberty highlighted some changes and additions in Apple’s latest 10-K form, which is required by the Securities and Exchange Commission (SEC) to meet specific standards A summary of the company’s financial status provided by the company.
For example, this company added more detailed risks related to the App Store in its 10-K form in 2021.AppleListed the European Union’s proposed “Digital Markets Act (Digital Markets Act)”, the bill will require Apple to make changes to its App Store business model. Apple also listed several ongoing antitrust investigations as risks.
At the same time, advertising is also listed as the biggest driver of service revenue growth, ahead of the App Store and Apple cloud services. In 2020, the App Store is the biggest driver of this category. Apple’s advertising component includes the fees Google paid to Apple to make its search engine continue to be the default search engine for iOS systems, as well as search ads on the App Store.
In addition, Hurberty emphasized that supplier non-trade receivables-which is the beginning of inventory in contract manufacturing companies-increased by 25% year-on-year in the September quarter.
The analyst believes that the increase in supplier’s non-trade receivables and inventory reflects the amount of construction.iPhoneCompared with 12, the demand for the current iPhone 13 series is stronger.