I don't think it's crystal clear how much Google makes from targeted vs honest classic "contextual" ads, though they're certainly plowing ahead with the former.
I'm dearly hoping this targeted stuff gets enough backlash / blockage that adtech companies give up on it, or that DuckDuckGo and other more privacy-respecting companies end up winning in the end.
Apple does not earn millions from the sales of targeted ads. Google does.
Apple earns millions from selling a link to Google.
They also want to provide their customers with access to the best search engine. I’m sure they’d prefer that not to come with ads, but that option is not for sale.
Claiming Apple earns the money from targeted ads is like saying Herman Miller or PG&E make money from targeted ads because they sell something to Google.
Just because you buy something from someone outside your company does not mean you're not benefiting from their business model. Companies don't operate in a vacuum.
To put an extreme example, just because Apple pays Foxconn does not mean they don't benefit from what's effectively slave labour. They're not removed from the effects of their transaction. The principal works in reverse too.
Apple knows exactly where their money is coming from and is complicit. They don't care, because Google has the best user experience, and their users that do care are power users that can opt-out. As much as Apple cares about privacy, nothing matches Google in search quality.
Steve Jobs once said in an interview with Wired:
> When you're young, you look at television and think, there's a conspiracy. The networks have conspired to dumb us down. But when you get a little older, you realize that's not true. The networks are in business to give people exactly what they want.
Sadly, I think that quote applies a lot to Google as well. I think a lot of people, and at least anecdotally almost everyone I talk to, just don't/doesn't care about (or maybe understand the threat of) the collection that is happening. In the case of Google, they just want to find stuff on the internet without trying multiple times or adding additional keywords to their search.
Apple earns billions yearly from their search deal with Google. Apple earns billions from sales of targeted ads.