Since the software upgrade was carried out in April this year, most iPhone have allowed users to decide which applications can track user activities, and this information is precisely to help Facebook IncAnd other enterprises release accurate advertising and measure the key data of advertising effectiveness.
The feature, called Application tracking Transparency (ATT), has raised concerns among many digital advertising and mobile gaming companies. For example, Facebook Inc believes that this will increase the cost and difficulty for brands to place advertisements on their platforms.
"We think (privacy change) shows that Apple IncMay want to compete in the global advertising market. " Royal Bank of CanadaBrad Eriksson, a capital markets analyst, said in a research paper released late Thursday. He also gave Facebook Inc,AmazonAnd Alphabet Inc-CL CThe parent company, Alphabet, has an "outperform" stock rating.
According to Refinitiv, Eriksson's performance forecasts and investment advice for Internet companies are four stars accurate.
Apple Inc can use data privacy as a cover and invest in search algorithms behind the scenes. " He thinks Apple Inc may earn advertising revenue through a search engine similar to Alphabet Inc-CL C.
If advertisers "have no choice but to put it blindly in the absence of Apple Inc's data," then Alphabet Inc-CL C's YouTube and Amazon.Com IncIts Connected TV will be a new choice and benefit from it.
Evercore ISI analysts also pointed out in August that Apple Inc may be coveting the advertising market, saying that "cracking down on third-party advertising" could make it a successful first step in the advertising market. But they also point out that ATT is mainly about protecting users' privacy, not commercialization.
Apple Inc, Facebook Inc and Alphabet did not comment.