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Apple iAd Gets Praises from Analysts, Potential Source of Billions in Revenue

Apple launched not only iPhone OS 4.0 on April 8th, but also the iAd mobile advertising service, meant to rival with Google and their similar offers. As the new platform was detailed, analysts pointed out that it might generate billions of dollars for Apple annually, once it debuts.

Steve Jobs recently showed the folks at Cupertino a slide mentioning that the iPhone and iPod Touch are able to deliver around 1 billion ad impressions per day, a very impressive potential for the devices. Such a performance involves having the average user spend around 30 minutes with apps that incorporate ads.

That equals a ton of money, analysts say and it could even bring the iPhone maker $2.5 billion in revenue when business hits its peak. Right now, the iPhone is sold in around 90 countries, but there are downsides to this success, like the potential of cannibalizing the iPod products and the lack of innovation in the Apple phone’s design.

A brand new iPhone could make sales explode, as well as give the iAd a boost and emphasize the cool features of iPhone OS 4.0. Will Google launch a rival product for the iAd or will they implement a brand new advertising system on Android to answer the challenge?

[via eweek]