In a feature story in Time, Facebook’s CEO has some choice words for Apple CEO Tim Cook.
A frustration I have is that a lot of people increasingly seem to equate an advertising business model with somehow being out of alignment with your customers … I think it’s the most ridiculous concept. What, you think because you’re paying Apple that you’re somehow in alignment with them? If you were in alignment with them, then they’d make their products a lot cheaper!
The quote comes after Cook railed against ad-supported behemoths like Facebook and Google. For Cook, those companies and their customers are not in alignment because the customers are the actual product–unlike Apple, which sells hardware. “If [companies are] making money mainly by collecting gobs of personal data, I think you have a right to be worried. And companies I think should be very transparent about it.”
Facebook and Apple have different business models. Apple products are more expensive than a lot of its hardware-producing competitors. Customers like Apple products and continue to buy them despite the price. Facebook’s user base, on the other hand, proves that people are willing to give up some privacy and data in order to use a free product, if they like it enough.
It’s possible for both models to succeed. Right?
[h/t: Business Insider]