Watch out - I think apple revenue for services is increasing, now almost 30% and gross margins on services is ~75%

I think ads are projected to be $9b this year

Actually, they sell lots of ads in the app store. I will not be surprised if they sell video ads, display ads or search ads in the future. They could earn tens of billions in revenue per year; the main business question is how that trades off against the various downsides of advertising sales.