According to Facebook CEO Mark Zuckerberg, Apple is likely to hurt small businesses and deny users personalized services.
Apple Inc (NASDAQ: AAPL) stock closed yesterday trading at $134.72, up 0.30%. Additionally, AAPL stock was up approximately 0.13% during the after-hours trading session. Notably, Apple released its latest software update, iOS 14.5 for its iPhone users. However, the update from Apple has been viewed as a nightmare for the social media giant Facebook Inc (NASDAQ: FB) due to the new privacy changes that will significantly alter the company’s revenue collection through personalized advertisements.
Facebook stock closed yesterday trading at $303.04, up 0.63%. Meanwhile, FB stocks had gained approximately 0.14% during the after-hours trading session. Facebook heavily relies on its advertising segment to contribute to its revenue. Last year, the social media giant recorded revenue of up to $85.9 billion, which was largely from the advertising segment.
Apple and Facebook Feuds
As for the new iOS 14.5 for both iPhones and iPads, it requires any app developer to get permission from the user to track their online behavior across various platforms.
The revelation is a nightmare for Facebook stock and also its future growth prospects. Mind you Apple is one of the major smartphone makers globally, whereby it sold devices worth $274.5 billion last year. Furthermore, the company has released a series of its latest devices that have recorded notable sales in the past few months.
Facebook has been built in the past decade to reap benefits from its global touch through charging advertisements on its platforms.
According to Facebook CEO Mark Zuckerberg, Apple is likely to hurt small businesses and deny users personalized services. “Every business starts with an idea, and being able to share that idea through personalized ads is a game-changer for small businesses,” Facebook said in a blog post in February. “Limiting the use of personalized ads would take away a vital growth engine for businesses.”
However, Apple CEO Tim Cook dismissed the claims and noted that privacy is necessary for humanity. “We know these things are flimsy arguments,” Cook said. “I think that you can do digital advertising and make money from digital advertising without tracking people when they don’t know they’re being tracked.”
With the new iOS update, Facebook will have to come with a new way to convince Apple product users in allowing their data to be collected and shared with third parties. Perhaps an incentive program where Facebook users earn from allowing their data to be used for personalized advertisements. Through blockchain technology and the cryptocurrency market, the company could easily navigate the hurdles set in place by Apple. However, the results will rely on how the two tech companies resolve their differences.