Facebook Inc (NASDAQ: FB) CEO Mark Zuckerberg said that Apple Inc (NASDAQ: AAPL) emerged as a powerful competitor to the social media giant.
What happened: Zuckerberg used the opening statement on the company’s fourth quarter earnings conference call to criticize the Cupertino, Calif.-Based iPhone maker.
Facebook’s CEO said that Apple uses its domain to promote its own services, especially its messaging app – iMessage.
“IMessage is a key element of your ecosystem,” noted Zuckerberg. “It comes pre-installed on every iPhone and they prefer it with APIs and private permissions, which is why iMessage is the most used messaging service in the United States”
Zuckerberg noted Apple’s efforts to gain share in the app and service segments and said the rival tech giant has “every incentive to use its dominance on the platform to interfere with the way our apps and other apps work, what they regularly do to give preference to theirs ”.
The executive spoke about the next privacy changes in iOS14 – Apple’s latest operating system for its smartphones.
Zuckerberg said it would make it more difficult for small businesses to reach customers using targeted advertising.
“Apple can say it is doing this to help people, but the movements clearly track the interests of its competitors,” said Zuckerberg.
Why does it matter: Facebook and WhatsApp messengers are rivals to Apple’s iMessage.
Zuckerberg said in the conference call that Apple and governments have the ability to read messages from most people on iMessage and stressed that WhatsApp is a “superior” product.
Facebook ran full-page ads in major publications like the New York Times, Wall Street Journal and Washington Post last month, targeting Apple’s privacy features on iOS14.
See too: Facebook says iOS 14 will affect its business model and expects Audience Network revenue to drop 50%
The social giant reported earnings in the fourth quarter of 2020 of $ 3.88 per share on Wednesday, exceeding analysts’ estimate of $ 3.22. Daily active users increased 11% year-over-year, to 1.84 billion.
See too: Apple exceeds first quarter earnings expectations with iPhone and China’s strength to generate record revenues
Price action: Facebook shares closed down 3.51% to $ 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% below $ 142.06.
Courtesy photo: Anthony Quintano via Wikimedia
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.