Apple uses ‘privacy as cover’ for push advertising, the analyst said
In recent years, Apple has made its commitment to privacy a unique selling point, appearing to ensure iPhone customers that its data is safe from prying eyes.
While this stance has been somewhat undermined by the recent controversy over photo scanning for child abuse images (which has been delayed), one analyst believes the company’s apparent commitment to privacy could disguise another long-term goal: to get into the internet advertising game that earns both Facebook and Google the lion’s share of their respective revenue.
“We view (the privacy changes) as a sign that Apple may want to compete in global advertising,” RBC analyst Bran Erickson said in a client note seen by Reuters. ‘Privacy changes’ refers to App Tracking Transparency (ATT), an update to iOS 14.5 that allowed iPhone owners to block user tracking.
The company “could use data privacy as a cover as it invests in a behind -the -scenes search algorithm,” Erickson continued, apparently suggesting an Apple -branded alternative to Google and Bing.
Finding Apple – Really?
The idea that Apple might consider challenging Google may sound a bit off, and it’s not the only interpretation of the company’s privacy moves. In fact, Reuters said that while another firm, Evercore ISI analysts, agreed that “disruptive third-party advertising” would give Apple a leg up in the world of advertising, the ATT is intended for user privacy, not familialization.
Creating a search engine that works as well as Google’s algorithms is a lot of work, and even well -funded rivals struggle to make any significant explosion. Just this week it was reported that Microsoft’s most sought after Bing term is “Google”.
And Apple’s previous attempts to enter Google’s territory haven’t always been smooth, as anyone who remembers the early days of Apple Maps will attest.
Then there’s the fact that Google pays Apple an estimated $ 15 billion a year to be the default search engine on the company’s iPhones. Making its own search engine will end up with the easy money that Apple pockets every year just by maintaining the status quo.
The flipside, of course, is that if Google can afford to pay $ 15 billion a year for the privilege, then being the default search engine on the iPhone should be worth it to a company. Apple may decide it wants to know how much it can do if it cuts the middle man. Even the thought of privacy iPhone users will stand for is something else, though.