Apple IOS updates affecting Tech companies earnings

[Cookdata]

So, last year, Apple changed the way other tech businesses access its users' data. It gave iPhone users the choice of allowing other apps to analyze how they interact and use their apps, but it took a hit on tech companies that rely on individualized data to target adverts to their customers.

Apple made significant changes to the privacy settings of its mobile operating system last year, allowing iPhone users to choose whether advertisers could track them. Since Apple introduced the feature, a vast majority of iPhone users have opted to block tracking.

Source: https://www.nytimes.com/2022/02/03/technology/apple-privacy-changes-meta.html




Popular tech companies such as Facebook's parent company, Meta, Twitter, snap, and Pinterest has all suffered significant losses as a result of this effect. The chart obtained from NYTimes shows the state of the market structure, they have all been on a downward trajectory since the beginning of this year. Yesterday, Facebook alone declared a loss of close to $10 billion[1]



[1]  https://africa.businessinsider.com/advertising/facebook-blames-apple-after-a-historically-bad-quarter-saying-iphone-privacy-changes/tljx88m

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[The Cryptovator]

Nothing wrong. Every company will look for its own benefits. As we know Apple always provides something unique than other competitors. And you know that that's why Apple is the most popular company. They don't compromise with their policy. It doesn't matter other companies lose revenue for that. Why others like meta couldn't find the solution? Everyone has privacy and it's their right. Apple very rarely leaves loopholes in its operating system.

[adaseb]

Pinterest and Snap, good look at the weekly chart. Those two companies were in a bubble pretty much. So I am not surprised they are losing so much value. I think they are getting the correction they need.

Facebook was overvalued for years and it’s value pretty much doubled from the 2019 highs very quickly and their valuation is more inline with the price that it’s trading at now. This iOS update only will hurt them temporarily and it’s still a great company and people will keep using it anyways.

[mk4]

And rightfully so. I'm really not that against targeted advertising(because it's useful as hell, and could be morally/ethically sound if done well), but Meta Platforms really took it too far when it comes to "knowing" their Facebook/Instagram users.

^Though it's also partly the regulators fault for not giving clear limits on what data these companies can and can not collect.

[Gyfts]

Tim Cook's been pro-privacy, to the extent any CEO of a massive tech corporation has been pro-privacy, which isn't very much.

I suppose better than nothing, but how long until Apple caves in again and starts selling user data to massive tech companies like Facebook for a share of their revenue? They voluntarily gave up information of their users to be stored in some database somewhere for marketing and tracking, I'm not inclined to they'll be so charitable.

Google does the same thing, by the way. But users readily accept it because they're under the false belief that the search engine is worth it. If you don't pay for the product, you are the product, as they say.

[pinggoki]

It definitely will as most of them harvest user data so the update definitely took a toll with one of their biggest ways to make money. I think that it's a good thing though, with this update, a temporary respite is a good thing for people especially those who value their privacy and it's a win for us because companies are suffering and not us.

[lumbanrang]

Not only blaming Apple, when Facebook went down a while ago, Zuckerberg also blamed TikTok for their losses. They mentioned that quite a lot of their users have switched to TikTok and don't check in to their Facebook account anymore https://www.dailymail.co.uk/news/article-10471227/Facebook-loses-users-time-Zuckerberg-blames-TikTok-boom.html. But it's also quite funny considering that even though they are losing money, they still have 1.9 billion users on their platform and this number will also increase.

I think the most plausible reason for this loss is because the bubble has burst because most stocks of tech companies are overvalued https://www.thestreet.com/investing/tech-sell-off-continues-signs-point-to-a-bubble-burst.