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Facebook Inc (NASDAQ: FB) CEO Mark Zuckerberg said that Apple Inc (NASDAQ: AAPL) has become a strong competitor for the social media giant.
What happened: Zuckerberg used the opening statement on the company’s fourth quarter earnings conference call to castigate the Cupertino, California-based iPhone maker.
The CEO of Facebook said Apple is using its dominance to promote its own services, especially its messaging app – iMessage.
“IMessage is a key part of their ecosystem,” Zuckerberg noted. “It’s pre-installed on every iPhone and they prefer it with APIs and private permissions, which is why iMessage is the most widely used email service in the US.”
Zuckerberg noted Apple’s efforts to gain stakes in the apps and services segments and said the rival tech giant “has a vested interest in using its dominant position on the platform to interfere with the operation of our applications and other applications, which they regularly do to prefer theirs ”.
The executive discussed upcoming privacy changes in iOS14 – Apple’s latest operating system for its smartphones.
Zuckerberg said it would make it harder for small businesses to reach customers using targeted advertising.
“Apple can say they are doing this to help people, but the movements are clearly following the interests of their competition,” Zuckerberg said.
Why is this important: The Facebook Messenger and WhatsApp messengers are products that compete with Apple’s iMessage.
Zuckerberg asserted during the conference call that Apple and governments have the ability to read most people’s messages on iMessage and stressed that WhatsApp is a “superior” product.
Facebook ran full-page ads in major publications such as the New York Times, Wall Street Journal, and Washington Post last month, targeting Apple’s privacy features in iOS14.
See also: Facebook says iOS 14 will hurt its business model, expects audience network revenue to drop 50%
The social giant on Wednesday reported fourth quarter 2020 earnings of $ 3.88 per share, beating analysts’ estimate of $ 3.22. Daily active users increased 11% year over year to 1.84 billion.
See also: Apple Surpasses Q1 Profit Expectations As iPhone and China Force Post Record Revenue
Price action: Facebook shares closed 3.51% lower at $ 272.14 on Wednesday and fell nearly 1.9% in the after-hours session to $ 267. On the same day, Apple shares fell nearly 3.2% in the after-hours session to $ 137.43 after closing 0.77% lower at $ 142.06.
Courtesy photo: Anthony Quintano via Wikimedia
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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