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Obsession is named after Apple and TikTok.

Obsession is named after Apple and TikTok.

Obsession is named after Apple and TikTok.

A number of technology companies such as Google, Meta, Snap Apple and Tik Tok cited as an explanation for the declining business situation in the second quarter of 2022.

For years, high-tech companies used quarterly growth results, but that’s no longer the case. That problem was reflected in the big tech giant’s financial report last quarter, when it spoke of a deep recession and a less positive outlook for the future. Every report directly or indirectly mentions Apple and TikTok.

Tik Tok grew to 1 billion monthly users in 5 years, while Facebook and Instagram took 8 years to catch up. And Apple’s data change policy is forcing other companies to adjust their models as well.

Logos of some popular social networks.  Photo: CNN

Logos of some popular social networks. See: CNN

The first is Snap. On July 21, Snapchat reported 347 million daily active users, beating analysts’ estimates of 343 million, but generating just $1.11 billion in revenue. “The results for the second quarter of 2022 do not reflect our expectations,” said CEO Evan Spiegel.

Wedbush Securities analyst Dan Ives described Snap’s results as “shipwrecked” due to “the slowdown in digital advertising, the privacy hurdles Apple has brought to iOS, and the competition in the industry.” Snap’s CFO Derek Anderson cites TikTok’s popularity as one of the reasons its earnings have fallen short of expectations.

Not long ago, Twitter announced that his financial situation was not very good. The company partially blamed Elon Musk, but acknowledged that “the year-over-year decline in revenue reflects the struggles in the advertising industry.” The social network says there are “headwinds” that are holding back business. follow up WiredTwitter appears to be hinting at changes to Apple’s privacy policy for users of the platform.

July 26 Alphabet, the parent company of Google and YouTube, posted its slowest quarterly revenue growth in two years due to pressures in the digital advertising market. But YouTube Shorts, a short video feature similar to Tik Tok, is attracting more than 1.5 billion monthly views, according to the company.

A day later, Meta reported that the company’s revenue fell for the first time since its IPO a decade ago, due to Apple’s influence on advertising, the loss of its Metaversion business, and competition from TikTok. As with Alphabet, Rails is the bright spot, a feature learned from Tik Tok that’s seeing a huge surge in users.

“With the advent of Tik Tok, social networks are no longer a social network, but a media site. Now Facebook, Instagram or YouTube are connected. And users have not just one, but up to three applications that offer short videos. The big enterprise experience,” commented independent digital technologist Jay Owens.

While Google, Meta or TikTok struggle to become clones of each other, they face another big problem: Apple. Reports from Snap, Twitter and Meta highlight the problem of online advertising and user tracking. This is the App Tracking Transparency (ATT) feature that Apple introduced starting with iOS 14.5, which allows users to avoid being tracked by apps to show them targeted ads.

The ATT has significant impact on companies that specialize in collecting user data to recommend ads on sites like Facebook and Twitter. Meta CEO Mark Zuckerberg once admitted the company could lose $10 billion in ad revenue this year because of ATT. Meta CFO Dave Wenner and Alphabet Head of Business Phillip Schindler confirm that ATT represents a major growth challenge for the digital advertising industry.

“Users’ trend towards TikTok and Apple’s ATT changes are making it difficult for companies like Meta and Twitter to make money. They were forced to redesign their products, but they couldn’t improve them in the future. One night” – said Andrew. roses. Founder and CEO of media analytics company Parkor.

Meanwhile, Apple is still doing well, even if other rivals are struggling. In its July 28 financial report, the company reported record sales of $83 billion, up 2 percent from the same period last year. The highlight was the smartphone segment, which reached $40.7 billion. USD, up about 3%.

“Considering the challenges we faced last quarter, we’re very pleased with the progress we’ve made,” said Tim Cook, Apple’s CEO. “This quarter’s record results are a testament to Apple’s continued efforts to innovate, raise awareness and enrich the lives of customers.”

Bao Lam (Consequences Wired)

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