Services != Advertisement. Advertisement is about collecting data from potential customers and offering that to advertisers. Services in the context of Apple is about selling the hardware hoping to capitalize on the ecosystem of their services (music, news, icloud, etc). In extreme cases such as Sony who sells PlayStations ("hardware") at a loss hoping to recover it from game sales ("services"). Apple is more like Sony than Google.

There is still a few years to go by for Apple's service bucks to surpass the hardware bucks, while Sony (the gaming division) is loosing money on hardware.

Apple has not described themselves as a services company. Tim Cook has said that growth in the company will come from services. So the company focuses on that. Apple provides some services, it is not a services company.

Apple is trying its best to brand itself as a services company, but its actions show that it is not ready to actually embrace the platform openness that comes with it. Look at Microsoft for a much better example of a services-focused company which also sells hardware.

not really, because iphones have ridiculous huge profit margins. Apple services earnings is not even close to iphone selling earnings. But one does boost the other so that's what they are doing. But there is still a few years to go by for Apple's service bucks to surpass the hardware bucks.