Facebook boss Mark Zuckerberg slammed rival Apple for their “self-serving and competitive” privacy changes, on the day the social network announced that its profits rose 53 percent last year compared to 2019.
Facebook benefited in 2020 from the fact that more people were at home during the pandemic and that the use of their platforms was increasing.
But CEO Zuckerberg is sounding the alarm about upcoming changes to Apple that could threaten the future dominance of his business.
Facebook’s results for the last quarter of 2020, reported on Wednesday, came when Apple announced that it had also had an extraordinary year with revenues of more than $ 100 billion in the three months to end-December.
Only a handful of companies, including Walmart, have previously reported $ 100 billion in quarters, while Amazon is expected to break this barrier when it reports next month.
But Apple’s profit margins are estimated at about 23 percent – about five times that of one of the retailers.
Apple plans to introduce a software change that gives iPhone and iPad users a clearer opportunity to choose the ad tracking for online ads, a big piece of Facebook.
Zuckerberg also believes that Apple is positioning iMessage to catch up with Facebook Messenger and WhatsApp.
“iMessage is an important link in their ecosystem,” Zuckerberg told CNBC. “It’s pre-installed on every iPhone and prefers it with private APIs and permissions, making iMessage the most used messaging service in the US.”
Apple’s new policy will prohibit certain data collection and sharing, unless people prefer to locate on iOS 14 devices, via a call when downloading the app.
Zuckerberg had louder words to say about Apple’s business practices.
Mark Zuckerberg’s company made $ 28 billion in profit in the last quarter of 2020
‘Apple has every incentive to use their dominant platform position to interfere with how our apps and other apps work, which they regularly do to give their own preference.
Apple may say it’s doing it to help people, but the movements are keeping a close eye on their competitors’ interests. We and others will oppose this in the foreseeable future. ‘
Facebook still had a lot to celebrate on Wednesday and posted a $ 11.2 billion profit on $ 28 billion in revenue in the last three months of 2020.
The California company’s revenue rose 33 percent during the quarter to about $ 28 billion.
At Apple, Zuckerberg had a few harsh words about their upcoming software changes. Pictured: Tim Cook, CEO of Apple
Their apps – Instagram, Messenger and WhatsApp – have a 14 percent year-on-year increase in monthly active users, with 3.3 billion people, nearly half the world population, using them.
After an initial drop in advertising in March, Facebook’s business grew as more people bought products online during the pandemic, executives said.
“We ended the year strong because people and businesses took advantage of our services during these challenging times,” Facebook CEO Mark Zuckerberg said in a statement.
But the 36-year-old company warned that challenges lay ahead, with the ‘evolving regulatory landscape’, including changes to Apple software.
“We also expect to have a more significant advertising target in 2021,” CFO David Wehner said in a statement.
‘This includes the impact of platform changes, particularly iOS 14, as well as the evolving regulatory landscape.
“While the timing of the iOS 14 changes remains uncertain, we would expect an impact to start late in the first quarter.”
Facebook warns that pressure from governments could change their financial future
The 36-year-old said he remains optimistic about the company for next year
Dozens of states and the federal government sued Facebook last month, claiming that the social media giant abused its dominance in the digital market and was competing.
This month, social media giant Donald Trump, and many of his allies, removed from their website after the January 6 attack on the Capitol, accusing him of inciting violence.
Zuckerberg said he is optimistic about the year ahead.
“I’m excited about our 2021 product roadmap as we build new and meaningful ways to create economic opportunities, build a community and help people just have fun,” he said.
Analysts said the results show the resilience of the firm Palo Alto.
“Despite the negative publicity and antitrust issues, there seems to be nothing that can stop the world’s most important advertising platform,” said Jesse Cohen, senior analyst at Investing.com.
Apple, meanwhile, ends 2020 with its most profitable quarter ever, with $ 111.4 billion in sales driven by people upgrading their technology to work from home.
Apple announced on Wednesday that it has exceeded $ 100 billion in quarterly revenue
On Wednesday, they announced the results for the first quarter of 2021, which ended on December 26, 2020.
Profits rose 29 percent to $ 28.76 billion in the three months to December 31.
Apple shares rose 81 percent in 2020, rising by about seven percent until Wednesday.
Revenue from iPhones increased 17 percent year-on-year, with $ 65.60 billion in sales.
Apple released four new iPhone 12 models in October – the first to include 5G.
Investors believe it has created a ‘superbike’ of users to upgrade. The new iPhone has seen 57 percent sales growth in China, with a more developed 5G network.
“They’re full of features that customers love, and they’re coming in at exactly the right time, where 5G networks were,” said Apple CEO Tim Cook.
The launch of the iPhone 12 by Tim Cook, pictured, helped boost Apple’s profits
In the US, the average retail price of the iPhone rose to $ 873 from $ 809 a year ago, driven by buyers moving to the more expensive versions, according to a customer survey by Consumer Intelligence Research Partners LLC.
A mini iPhone 12 has a starting price of $ 699, while the largest and most expensive iPhone 12 Max starts at $ 1,099.
Apple’s other product category, which includes Apple Watch and headphones such as AirPods and Beats, rose 29 percent from last year to $ 12.97 billion, even though people spend less time commuting and traveling.
Apple released a high-end pair of headphones, AirPods Pro Max, in December with a steep price tag of $ 549.
Macs and iPads, the Apple devices most likely to be used for telecommuting and school, were also in this quarter.
Cook said sales would have been higher if the pandemic had not closed the stores.
“We can no longer be optimistic,” he told The Wall Street Journal.