Apple is no stranger to controversies around data. They’ve regularly been accused of collecting data and failing to announce it. They also have used their ubiquitous iPhones to track users wherever they may be. Despite the problems of the past, it would seem that Apple and their CEO Tm Cook are turning over a new leaf. How so? In a recent interview with Fast Company magazine, Cook put data privacy right below the climate as one of the major issues of the day. He went further and expressed concern that protections for end-to-end encryption were being weakened.
Apple’s end-to-end encryption for its users first became an issue following a shooting in San Bernardino a few years ago. The shooters were iPhone users and the FBI very much wanted Apple to unlock it for them so they could use the phone’s information to determine if the shooters were acting on their own or if they were part of a larger terrorist cell. Much to the surprise of many, Cook refused, even though the terrorists were already dead. The heir to Steve Job’s throne realized that as soon as they unlocked the phone, it would be easy to reverse engineer the process, opening up people to being spied on by the government.
Part of Apple’s latest data privacy initiative is the App Tracking Transparency feature of the next iOS update. One of the interesting aspects of this is that rather than feeding everyone a bunch of advertising based on the data gleaned from their apps, users will now be asked if they want to be tracked for advertising purposes. Finally, Apple customers will actually have a choice as to whether or not they want to be surveilled all the time. That in itself is borderline revolutionary and has no doubt upset a few people in the app store.
One of the big tech companies that isn’t happy about the change that Apple is making is Facebook. They actually expect their ad revenue from Apple to be cut in half as a result of that change. Given that their typical ad revenue is over $80 billion, we aren’t talking about chump change. Just think about that, Facebook is making $80 billion a year off of advertising to you on Apple products.
Now, is that the whole story? Probably not. Tim Cook is an intelligent individual and he very much understands the value of data. If anyone grasps the concept of data as the new gold, it would be him. After all, Apple has the most tight-knit ecosystem of hardware and software on the planet. Remember, the FBI wanted the San Bernardino terrorists’ iPhones because they knew how much data is in there. Just because Apple isn’t eager to share it with anyone else, whether it be the FBI or the makers of Candy Crush doesn’t mean they don’t know everything you do on their phones. They know where you are, what you’re buying, how many apps you have, which ones you use, etc. Remember, that new transparency feature just asks if you want to be tracked for advertising purposes. It doesn’t say anything about being tracked for any other reason. In short, that $40 billion that Facebook stands to lose isn’t really disappearing, it’s just going into Apple’s pocket instead.
Is this a cynical take? Maybe. However, it has been shown that Apple tracks your location even when they say they don’t. It’s also been proven that the tech giant plans obsolescence into their devices, making you much more likely to spend money on a new one sooner than you normally would. Especially given that you are already locked into their ecosystem.
In the end, despite Cook’s words, Apple’s actions at the end of the day still look like a company that is more about getting as much money as they can out of everyone rather than trying to help people first. Trust us, you can run a profitable company and still be people focused rather than dollar focused. Maybe you won’t be the most cash-rich company on the planet but you’ll still be a leader. The difference is you’ll be a leader in how you help people improve their lives rather than merely a leader piling up dollars in the back room.
What’s your data worth?
