• BusinessWeek, Wednesday, December 10, 2008 12:15 PM

Apple's iPhone "is fast developing into a breakthrough product for mobile advertising," says BusinessWeek's Peter Burrows. With "a stellar display, a tremendous Web-surfing user base, and GPS-enabled apps" the iPhone holds much promise for advertisers and possibly, Apple.

However, so far, Apple doesn't get a cut of ad revenues from advertisers, as it does on software sold through the App Store. It may one day change that, especially as new tools (like this new one from Google) enhance the iPhone's advertising capabilities. "At some point -- and it won't be soon -- I wouldn't be surprised to see Apple demand a small, appropriate piece of the action," says Burrows. "As its markets mature in the years ahead, it's one more way for the company to cash in on the value it has created."

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