Apple Inc. AAPL is looking to expand its revenue streams in China with the launch of its search advertising service this week, AppleInsiderreportedWednesday.
What Happened: Apple has launched the advertising platform called Apple Search Ads in mainland China, enabling developers and advertisers to have App Store ads presented to users in the region, as per the report.
Ablog postby AppInChina, an agency that helps international apps launch in China, noted that advertisers and businesses must gain state approval and industry-specific licenses to be able to advertise in mainland China.
Apple may reportedly submit the documents uploaded by the businesses to third-party databases and government entities for verification.
Why It Matters: Apple Search Ads is being launched in China five years after it was launched in the U.S. The launch is in compliance with Chinese regulations and comes after more than 2,500 games wereremovedfrom the App Store in China in July last year.
Apple is looking to diversify its revenue streams in China, which has traditionally been a strong market for the Cupertino-based company. The iPhone maker is now facing stiff competition from rival smartphone makers in China such as Huawei and Vivo.
The App Store was a significant driver of Apple’s $16.9 billion in services revenue generated in the recent second quarter.
Price Action: Apple shares closed 0.2% lower in Wednesday’s trading session at $133.70.
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