Back in September, Apple CEO Tim Cook went after advertising-supported businesses like Google and Facebook in an interview with Charlie Rose, saying they were not in alignment with customers because for them the customers served as the product. Now, Facebook CEO Mark Zuckerberg has slammed Cook and Apple in an interview with Time magazine, saying that they are not at all in alignment with their customers (via Business Insider).
“A frustration I have is that a lot of people increasingly seem to equate an advertising business model with somehow being out of alignment with your customers … I think it’s the most ridiculous concept. What, you think because you’re paying Apple that you’re somehow in alignment with them? If you were in alignment with them, then they’d make their products a lot cheaper!”
It is rare to see two of the biggest tech executives make such public attacks on each other’s companies. The truth is, Facebook’s entire business is built around collecting personal data, then selling advertisements tailored to that personal data. However, Apple does the exact opposite, selling hardware products and collecting very little data.
While Facebook is free for everyone to use, the price people pay is that it collects some user information. Zuckerberg and consumers, based on their actions, think that’s a fair deal. On the other hand, Apple sells its products at a premium on the idea that if you don’t want to turn over your personal information to a company, then you should use its products.
Do you guys think running a business on advertising, that is based on personal information, is a fair deal?
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Facebook isnt in alignment with customers, I mean look at their Native Facebook app.
Forcing people to download Facebook messenger just to chat? When it could have all been done on the Native app, oh wait its there to collect even more personal data from their users. Then you have the new “Facebook Groups” app.
Oh well, using the web browser version of facebook on the mobile takes care of having for download seperate apps fpr things that used to be done only on 1 app.
and a most recent as default option would be nice, instead of necromancing old threads because your werent paying attention to dates
Ok here is an example of my stance on this. Draw your own conclusions. If I had a choice between having to give one or the other up all together I would give up Facebook. In fact I have.
Zuckerberg is so completely off base that it is a joke. It ie easy to say “make your products cheaper” when you have no clue what it takes to run a nanufacturing operation worldwide, with multiple suppliers around the world. Zuckerberg has never manufactured anything, except maybe the Facebook phone (enough said right there), and his whole product is essentially a website.”We offer our product for free is easy”, when all you have to do is maintain a few servers around the world, which are probably outsourced anyway. A lot harder when you actually develop your own silicon, software, hardware, and provide some of the best customer support available.
As for Zuckerberg himself, please show what qualifications he has to make these statements. Its not like he actually invented anything (he stole most of the Facebook website code and ideas), nor is he actually a sharp businessman. He has a ton of money, but it is the same sort of money that somebody would win in a lottery; he just happened to have some great luck. And like a lottery winner, his business skills did not increase just because he has that money. Cook ran the entire supply chain/manufacturing program at Apple before becoming CEO, so I think he probably has a little (one whole huge amount actually) of business skill than Zuckerberg. Apple, to varying degrees of success, is trying to make better products and innovate. Zuckerberg and Facebook’s only innovation is trying to find sneakier ways of stealing your personal data, and making it more difficult and confusing to try and get your privacy settings the way you want.
Kostas
He obviously shouldn’t have said anything at all. He is not alone however in his business practices…google for one uses your personal information to make money, through ads, etc. With that being said, when I visit your site, I am bombarded with ads based on my browsing history. Even though you use a separate service, they are displayed on your site and therefore your responsibility. So in essence, your business practice is similar to facebook/google. Just saying.
Facebook and Google attained their dominance and size because they’re free. I don’t like having my data collected either, and I would probably pay a nominal fee to opt out of that part of their respective business models, but most wouldn’t . Zuckerberg is right to denounce Apple for positioning itself as some sort of holy warrior. We spend most of our time griping about cell phone bills and neglect the fact that iphone prices have continued to increase. Carriers are passing on those costs to you when you sign a contract.
On black friday, I noted that I could buy a 60″ 4K television for less than I paid for my iphone 6 (64gb) model. Think about that. It’s not a direct comparison, but margins on iphones are very high for the industry.
In the end, we should probably stop faulting these companies for anything they do. They’re beholden to their shareholders and their mission is to maximize profits. Pragmatic regulation by governing bodies is what should be ultimately looking out for the public interest in terms of costs and data collection.