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What disincentives are implicit in Apple's business model that discourages collecting more data from their users?

darawk 9y ago
Not collecting user data is something that only Apple can do. Google depends on data collection for its primary revenue stream. Apple does not. This means that focusing on privacy is a uniquely competitive tactic for Apple to take, and they have shrewdly taken it. To be absolutely clear, i'm not disparaging them for taking this position. I think it's great. I'm just trying to contextualize it.
- whytaka 9y ago
  And yet we know that the personal data of your customers is worth billions. And we also know that nothing about writing walled software ecosystems prevents one from syphoning this data. So it would appear that Apple has purposefully left money on the table. So please tell me how that fits with your 'self-interest' explanation of Apple's stance here.
  - darawk 9y ago
    I already have elsewhere in this thread, but here goes: Google's primary business model is contingent on user data collection. Apple has the most profitable business in the world, which is not contingent on user data collection. Yes, you are absolutely correct that Apple is leaving a few billion dollars on the table by not doing this. However, that's only true in a fairly narrow, greedy (in the sense of a 'greedy algorithm') sense. Taking a more strategic perspective, you would look around and see that your competitors have to collect this data to survive. But you don't. That makes this a weakness for them, which means that it's a differentiating factor for your product that they can never copy. This strategic advantage is worth much more than the few billion in quick cash they might pick up by monetizing their user data.
    - whytaka 9y ago
      But we see that the general public's relationship with privacy is a lax one at best and at a time when AI solutions are the breakthroughs and revenue generators of the future, that Apple is restricted to an uncertain trajectory. Are you sure that the market value of data and their derived innovations aren't worth more in dollar terms than the privacy market? Not only that, but having taken this stance so strongly, it makes any future relaxations of their self-imposed rule an even riskier move as it exposes them to hypocrisy. So it's clearly a double edged sword. And while it's certain Google depends on data now, nothing stops them from making excellent phones with excellent hardware with privacy to boot to compete with Apple on their turf.

Not collecting user data is something that only Apple can do. Google depends on data collection for its primary revenue stream. Apple does not. This means that focusing on privacy is a uniquely competitive tactic for Apple to take, and they have shrewdly taken it. To be absolutely clear, i'm not disparaging them for taking this position. I think it's great. I'm just trying to contextualize it.

whytaka 9y ago
And yet we know that the personal data of your customers is worth billions. And we also know that nothing about writing walled software ecosystems prevents one from syphoning this data. So it would appear that Apple has purposefully left money on the table. So please tell me how that fits with your 'self-interest' explanation of Apple's stance here.
- darawk 9y ago
  I already have elsewhere in this thread, but here goes: Google's primary business model is contingent on user data collection. Apple has the most profitable business in the world, which is not contingent on user data collection. Yes, you are absolutely correct that Apple is leaving a few billion dollars on the table by not doing this. However, that's only true in a fairly narrow, greedy (in the sense of a 'greedy algorithm') sense. Taking a more strategic perspective, you would look around and see that your competitors have to collect this data to survive. But you don't. That makes this a weakness for them, which means that it's a differentiating factor for your product that they can never copy. This strategic advantage is worth much more than the few billion in quick cash they might pick up by monetizing their user data.
  - whytaka 9y ago
    But we see that the general public's relationship with privacy is a lax one at best and at a time when AI solutions are the breakthroughs and revenue generators of the future, that Apple is restricted to an uncertain trajectory. Are you sure that the market value of data and their derived innovations aren't worth more in dollar terms than the privacy market? Not only that, but having taken this stance so strongly, it makes any future relaxations of their self-imposed rule an even riskier move as it exposes them to hypocrisy. So it's clearly a double edged sword. And while it's certain Google depends on data now, nothing stops them from making excellent phones with excellent hardware with privacy to boot to compete with Apple on their turf.