Apple Ads, AI, and iPhone Ultra: Key Developments in 2024

Apple has formed a new ‘Emerging Team’ to court developers for Apple Ads, confirmed a fall launch of a foldable iPhone Ultra, and is pushing AI integration across platforms. The moves reflect pressure to grow ad revenue, compete with Android, and cement Siri as a competitive differentiator—all while facing unresolved technical and monetization challenges.

The Emerging Team, detailed by 9to5Mac, is actively reaching out to developers to increase Apple Ads spending, which totaled $19.9 billion in 2023. The division’s focus on small and mid-sized developers contrasts with Apple’s existing ad partnerships with Meta and Google. However, Apple Ads remains a fraction of iOS’s overall revenue, and developer skepticism persists over the platform’s ability to scale beyond app store ads.

Apple Ads: A New Team, Old Challenges

The Emerging Team’s outreach includes personalized support for ad inventory placement and analytics tools. Apple’s 2023 Q4 ad revenue growth slowed to 13% year-over-year, trailing Google and Meta. Developer adoption of Apple Ads remains low—only 1.5% of iOS apps use the platform. The team’s success hinges on proving Apple Ads can drive conversions without compromising user privacy, a stated goal of Apple’s App Tracking Transparency framework.

Apple’s ad push coincides with iOS 27’s planned Siri integration for third-party apps. Developers report resistance to implementing Siri features due to unclear monetization models. One unnamed developer told 9to5Mac: “We’re not sure how to value Siri integration—it’s a cool feature but not a revenue driver.” The company faces a familiar pattern: hyping new APIs without clear financial incentives for partners.

iPhone Ultra: Foldable Gambit

Apple’s rumored iPhone Ultra will debut this fall as its first foldable device. The model, likely the iPhone 16 Ultra, will feature a 6.7-inch flexible OLED screen and a dual-layer hinged design. While 9to5Mac’s sources did not specify the six rumored features, the product represents a direct challenge to Samsung’s Galaxy Z Fold series and Google’s Pixel Fold.

The foldable market remains niche—global shipments grew just 11% to 14.8 million units in 2023. Apple’s entry could shift that trajectory, but engineering hurdles persist. Early prototypes leaked in 2022 revealed a hinge requiring 100,000+ cycles to maintain durability, a standard Apple typically exceeds. The company also faces design constraints: the Ultra’s thickness is reportedly 8.3mm when folded, 20% thicker than Samsung’s comparable model.

AI Agents and the App Store

Apple’s WWDC 2024 is expected to announce AI agent integration for the App Store. Current testing involves embedding contextual suggestions in app search results, but developers worry about quality control. An unnamed source told 9to5Mac: “Not all apps are built with AI in mind. This could lead to irrelevant recommendations.” The company’s closed ecosystem complicates matters—third-party apps must use Apple’s AI APIs rather than their own models.

The AI push extends to Siri integration in iOS 27. Developers are being asked to implement natural language query support, but adoption remains voluntary. Fitness apps like Strava have already adapted—supporting AirPods Pro 3’s workout tracking as a standalone feature. This hybrid approach (hardware/software integration) may define Apple’s AI strategy, but it leaves room for competitors offering pure software solutions.

What to Watch

Apple’s Emerging Team will report results at Q1 earnings in October. WWDC 2024’s AI announcements will test whether developers value Apple’s tools over Google’s Gemini or OpenAI’s APIs. The iPhone Ultra’s September launch will determine if Apple can replicate the foldable market’s early adopter success. Finally, iOS 27’s June 8 debut will clarify whether Apple can resolve monetization concerns around Siri integration—before competitors like Google leverage Android’s AI first-mover advantage.