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Apple’s iPhone privacy changes could affect Facebook’s Q2 revenue

By Sheila Dang

Apr 26 (Reuters) – When Facebook Inc reports its first-quarter results on Wednesday, investors will be concerned about how the notification of Apple’s new iPhone privacy policy will affect the second quarter.

A full-screen notification will begin to appear in iPhone apps on Monday asking users if they allow “third-party websites and apps” to cross-log for advertising purposes.

Facebook faces a decline of up to 7% in second-quarter revenue if 80% of its users prevent the company from keeping track of their activities on the iPhone, said mobile ad analyst Eric Seufert. That works out to nearly $ 2 billion based on Facebook’s fourth-quarter earnings.

Last year, Facebook fought back against Apple’s plans, running full-page ads in the New York Times and the Wall Street Journal, accusing Apple of harming small businesses that rely on personalized ads and harming the free internet.

The company has warned investors that a significant number of iPhone users could refuse logs and damage Facebook’s digital advertising business.

Facebook CEO Mark Zuckerberg has accused Apple of behaving anticompetitively by hindering other developers to benefit its own app ecosystem.

In March, Zuckerberg said that the social network could benefit from the changes to iOS, because marketers who have difficulty targeting potential customers could choose the easiest route to offer their products on Facebook, which has 2.8 billion active users. monthly.

Facebook should report new quarterly growth in ad revenue on Wednesday. Wall Street projects $ 23.7 billion in revenue for the first quarter, according to IBES data from Refinitiv, up 34% from the prior-year quarter.

(Reporting by Sheila Dang; Edited in Spanish by Ricardo Figueroa)

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