The new iPhone privacy feature threatens to undermine Facebook’s $ 86 billion advertising business and take the Apple-Facebook rivalry to the next level.
Why is this so important? This directly threatens the business models of companies like Facebook and Twitter that use data to wow users with targeted ads – and it gives Sean Birch of TheWrap and Alex Kantrovitz of Big Technology a lot to talk about in the latest Tech Talk. … For reference, Facebook’s revenue last year was $ 86 billion – 98% of which came from advertising. Earlier this year, Facebook warned investors that Apple’s privacy policy could affect its business, and the company recently said Apple’s changes would ultimately harm small businesses that rely on Facebook and Instagram ads. Cook, for his part, said he did not believe Facebook’s “contrived” arguments.
“I think you can do digital ads and make money from digital ads without tracking people when they don’t know they are being tracked,” Cook said.
Against this backdrop, Sean and Alex dive into the Apple-Facebook rivalry this week and explore why the social networking business is “vulnerable”; a little taste of this conversation can be found below.
Later, we will discuss the opinion of Judge Clarence Thomas, expressed on Monday, that the social media giants should potentially be regulated as general operators, in the same way that the government treats telecommunications companies. If this happens, companies like Facebook and Twitter will lose the ability to moderate content or offload users from their platforms; It goes without saying that this move will have serious consequences in Silicon Valley. So be sure to watch the full podcast for the latest tech news.
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Sean: What are your thoughts on the Apple-Facebook feud right now?
Alex: I think Apple sees Facebook as a clear threat to its business and is doing everything it can to overcome it. Likewise, when you send a message from an Android phone to an iPhone user, it turns green. It’s not for your privacy, it’s because Apple is actively trying to question Google, which provides an alternative mobile operating system on Android that you can disable if you don’t like iPhones and iOS or if you want something cheaper.
Likewise, Facebook is kind of a key piece of software on Android phones, because we use our phones mainly to make calls and text messages with friends. And Facebook has Facebook, WhatsApp and Instagram, and they work on both iOS and Android the same way. So if you, for example, moved your iOS messenger groups from Apple messages to WhatsApp or Facebook Messenger, now you suddenly don’t worry about it turning into this green message when you switch to Android, or you won’t. Don’t worry about your group chats being interrupted when you switch to Android. Thus, more than many people realize that Facebook and Apple are mortal enemies. And I don’t think Tim Cook is such a humanist who travels the world trying to save children. I think he’s a businessman doing everything in his power to undermine one of his key rivals.
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Facebook’s share price has just hit a new all-time high despite another data breach. But Facebook also seems to me relatively vulnerable compared to four other tech giants – Apple, Amazon, Google, and Microsoft – because they are highly dependent on ads.
Oh yes, and I am writing about it in [my book] It’s always the first day that Facebook is the most vulnerable of all tech giants. I mean, think about the benefits that every tech giant has: Apple has a device and a mobile operating system; Google has a mobile operating system; Microsoft has a desktop operating system; Amazon’s website is not dependent on the amount of time you spend on it, but simply whether you are there to transact and it has its own voice operating system.
What does Facebook have? Nothing. They depend entirely on other mobile operating systems and you basically have to use these other giants to get to Facebook and they depend on the time you spend on the app. They know this is a problem, so they hit the drums in VR because they have an operating system with Oculus. Right now, we are not yet living in the future they hoped for. P
This is not how Facebook hoped. So Facebook is extremely vulnerable. That’s why Apple takes these steps with iOS by directly attacking it. So to get this whole point home, the product is one thing, but being at the mercy of other companies, which is really a challenge for Facebook.
Watch the full conversation in the video above. For more information on technology, subscribe to the Big Technology newsletter.
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