Stratechery Apple and Facebook
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Jun 29, 2020 Discover Apple's unique position in the tech landscape as it faces off against giants like Google and Amazon. Dive into the contrasting business models of Apple and Facebook, highlighting user experience and revenue strategies. Explore the economics behind platforms like Facebook, and learn how its mobile advertising prowess shapes the app economy. Finally, uncover the ramifications of Apple's iOS 14 privacy changes on digital advertising, revealing the tensions between two tech titans and their broader impacts on the industry.
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Apple's Moat
- Apple's moat is its integrated user experience, which is highly valued by its customers.
- This allows them to charge premium prices and maintain a sustainable business model.
Apple's Leverage
- Apple's prioritization of user experience gives them leverage with developers.
- Developers need access to Apple's valuable user base more than Apple needs any individual developer.
Facebook as a Platform
- Facebook, despite appearing as just an app, functions more like a platform than Apple in many ways.
- It facilitates a large ecosystem where the total value generated by users exceeds Facebook's own value.