Elon Musk Is Fighting a Losing Battle Against Apple, Says Analyst

Trisha Kae Andrada, Tech Times 30 November 2022, 10:11 am

Elon Musk went off on Apple this week, claiming the company had mostly ceased advertising on Twitter and threatening to exclude the social media titan from its app store.

However, the CEO seemed to be fighting a lost battle, according to The Washington Post.

Apple's ad spending on Twitter and app store guidelines might determine whether Twitter can produce enough money to justify Musk's $44 billion purchase.

"If there's one company for him not to pick a fight with in the world, it's Apple, and he just poked the bear," said Wedbush Securities analyst Dan Ives.

He added that it is another bizarre struggle Musk has played since buying Twitter.

Musk and App Store

Musk called Apple's app store a "monopoly" and questioned if it backed censorship. Musk said he would "go to war" with Apple.

Musk's aspirations to grow Twitter's targeted advertising business may be hampered by Apple's privacy laws. Apple's 30% tax on app purchases might hurt Musk's subscription scheme, said the report.

Musk joins app-makers and regulators that have failed to rein in Apple's control over social media platforms. Facebook's publicity campaign against Apple's privacy restrictions cost billions in ad revenue.

The latest update is that lawmakers have not passed legislation allowing customers to download applications outside Apple and Google's app stores. US courts have not forced Apple to adjust its app sales prices.

As reported by Tech Times, Musk stated Apple warned it would remove Twitter from its app store. But since then, Apple has neither confirmed nor denied the claim.

If Apple blocked Twitter from its App Store, new users would not be able to download the app on iPhones and iPads, and current users would not be able to obtain updates.

Risky Move

It is a dangerous move by Musk. Apple exerts enormous control over Twitter as the social media company strives to expand its advertising model and promote subscription sales.

Twitter relies on Apple to attract tens of millions of people who use Apple products to browse the web.

Musk's outspoken criticism of Apple stands apart since the phone manufacturer was crucial to Twitter's advertising business.

According to internal Twitter statistics acquired by The Washington Post, Apple spent $48 million on Twitter advertisements in the first quarter. Also, Apple spent more than 4% of Twitter's income that quarter.

Ads Sector

Before Musk purchased Twitter, Apple used it to promote new products like the iPhone.

"Apple has put Twitter at the center of their product launch efforts and they have produced epic events on Twitter," said Lou Paskalis, a critic from the Twitter Influence Council.

Apple also affects Twitter's ability to diversify its advertising revenue, its main source of income. Twitter is well recognized as a platform where huge firms run extensive brand advertising efforts.

According to reports, Twitter has attempted to imitate Facebook parent Meta's success.

It enhances its capacity to help advertisers to target their ad campaigns to a finely defined portion of customers most likely to purchase the product after viewing or clicking on the ad.

Twitter's income split between brand and direct-response advertising is 85-15, but the firm wants a more equitable split.