Apple on Tuesday rolled out a software update to its iPhones and iPads, allowing millions of users to better control their privacy by opting out of data tracking, a move that has riled Facebook.
The rollout of iOS 14.5 shows the division between Apple and Facebook about the future of the internet. While Apple is giving users more control, Facebook and other tech giants like Google rely heavily on data for ad targeting, analysts said.
With the update, an iPhone prompt will ask users of they will allow an app to "track your activity across other companies' apps and websites." It will also explain in simple terms with your data will be tracked: "Your data will be used to deliver personalized ads to you."
Trying to wrap your head around it? Remember that time you added to cart a phone case that you're not sure you like then it shows up as a sponsored post in your Instagram feed?
It will be the choice iPhone user, allow data tracking or block it.
The iOS 14.5 update will also allow iPhone users to unlock their handsets while using a face mask, as long as they have an Apple Watch.
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'Change agent'
Mobile Dev Memo analyst and strategist Eric Seufert said Apple's new framework could "upend" the app economy along with digital advertising more broadly, calling the new policy "a change agent."
Seufert said in a blog post, "It’s impossible to dismiss the fact that digital advertising on mobile is conducted through what Apple defines as 'tracking': explicitly purging this activity from the ecosystem will require the mobile operating model to change."
With more than a billion iOS powered devices in active use around the world, a change to the mobile operating system that potentially hampers the effectiveness of digital ads could be significant.
Platforms such as Facebook or Google that rely on advertising typically get paid only when someone takes an action such as clicking on a marketing message.
Ads made irrelevant because less is known about users could mean fewer clicks and, by extension, less revenue.
Mobile apps and the internet in general have flourished by providing information, games, driving directions, and more free of charge, with ads bringing in money to keep data centers running and profits flowing.
While some people using iPhones might grant permission for tracking, marketers fear many will opt for privacy.
During an earnings call early this year, Facebook warned that Apple's change to its mobile operating system will likely make it tougher to target ads.
Facebook chief executive Mark Zuckerberg said in the call that Apple was becoming one of his company's biggest competitors, with its rival smartphone messaging service and tight grip on the App Store, the sole gateway onto iPhones.
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