Privacy has been a hot topic in the last couple of years. The Facebook-Cambridge Analytica incident and China’s social credit system have opened discussions about how to deal with personal data in this digital era. Many disapprove of the fact that their data is distributed across servers/companies/people, especially without consent; something Apple has taken seriously. In 2017 they announced a new course of direction, one in which data is highly protected – compared to other tech companies (Markman, 2019). This change is something the CEO of Apple, Tim Cook, has advocated extensively over the past few years, but is it wise?
Probably not. This is because many companies, especially tech companies, nowadays rely on data and will increasingly do so in the future. With Apple’s new strategy they are withholding themselves from crucial data that other companies will collect. Moreover, Apple is currently diving into new markets, by introducing, for example, the Apple Pay credit card and launching its own TV streaming platform; markets that are heavily dependent on data. By predicting what purchases one will do or which shows one will like, these services could become much more valuable and data is the essential ingredient for these predictions. However, Apple does not collect any data, does not track anyone and will not share any data (O’Flaherty, 2019). A noble decision, but also guaranteed to be unable to compete in the long run.
Furthermore, once a strategy like this has been announced it is hard to go back. If Apple would start collecting data again it would raise major criticism, much more than if companies like Amazon or Google (Alphabet) keep collecting data as they are used to.
Therefore, Apple has put itself in a difficult situation, without data they will not be able to improve its services at the rate their competitors can. They might still have a competitive advantage in the short run, but in the long run, this lack of accumulated data will turn into a money loser that they cannot reverse.
References:
Markman, J. (2019). Why Apple Will Come To Regret It’s Privacy Activism. Forbes. Retrieved from
https://www.forbes.com/sites/jonmarkman/2019/06/23/why-apple-will-come-to-regret-its-privacy-activism/#3d3c82ff42a9
O’Flaherty, K. (2019). Here’s The Real Reason Apple Claims To Care About Your Privacy. Forbes. Retrieved from
https://www.forbes.com/sites/kateoflahertyuk/2019/03/26/heres-the-real-reason-apple-claims-to-care-about-your-privacy/#5741ddb030f8
