Why the Facebook controversy could be good for Apple [MarketWatch]
Apple Inc. (AAPL)
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Source: MarketWatch
Why the Facebook controversy could be good for Apple As tech companies like Facebook Inc. come under fire for their data-privacy practices, Apple Inc. has one big thing working in its favor. Unlike platform-based companies that sell consumer data to marketers, Apple AAPL, -2.27% guards user information more tightly and instead makes most of its money off hardware sales. That may not always be as profitable as monetizing user info, but it could represent a key “competitive advantage,” according to UBS analyst Steven Milunovich, as Facebook FB, +0.74% and others draw further scrutiny from regulators . “Monetizing hardware has its advantages in creating trust,” Milunovich wrote in a note to clients Wednesday. “People tend not to worry about privacy—until they do.” See also: Facebook will become Myspace, says FANG-focused fund manager He points to a number of “platform” companies that have been the targets of antitrust actions in the past, including Microsoft Corp. MSFT, -0.70
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