Don't they make more by treating their customers as products (though i wouldn't call them customers because they receive no support, whether they pay or not)
How do they make money from giving their users free photo storage? I think the only path for that to be profitable was to grow the username for future subscription revenue.
“As always, we don’t sell your information to anyone, and we don’t use information in apps where you primarily store personal content—such as Gmail, Drive, Calendar and Photos—for advertising purposes, period.”