Facebook procured a good earning in the final quarter of 2020 but the next challenge for Facebook is the coming privacy update by Apple which can hamper the advertisement targeting capabilities of this social network.
Facebook CEO criticized Apple for working more towards its own interests than that of the users during a conference call. As people stayed at home during the pandemic the already huge user base of Facebook grew in the last quarter of 2020.
It also is the cause behind the raised revenue due to the shift towards digital advertisement even during such an economic crisis. But Facebook is predicting a decreased revenue in the latter half of 2021 due to the new step taken by Apple.
eMarketer analyst Debra Aho Williamson remarked that the pandemic has also continued to help Facebook’s monthly active user growth to remain strong in many regions, including in the US and Canada, whereas before the pandemic, user gains had slowed to a crawl. She also noted that there was a decline in the number of daily users in the US and Canada as the users had started using some other social media platform.
Apple has become the biggest competitor of Facebook due to its dominance in messaging on the iPhone and also because it has its own mobile platform which challenges other such apps like Facebook. Very soon Apple will ask for permission from its users for advertisements to show up when they use the internet and also to collect data when they use a device.