Facebook blames Apple after a historically bad quarter, saying iPhone privacy changes will cost it $10 billion
Applemade to the iPhone.
- Last May, Apple added a function to the iPhone to stop brands from tracking you across apps.
Facebook parent company
In April 2021, Apple enabled iPhone users to choose which apps are allowed to track their behavior across other apps. As a result, the vast majority of users opted out — which Meta CFO David Wehner said is hurting Facebook's ad revenue.
"The impact of
Meta's primary source of revenue is its
When Apple gave users the option to cut off those apps from tracking them across other apps, it cut off a primary means of collecting advertising data. The change came as part of Apple's iOS 14.5 update, which launched in April 2021, and forced app publishers to include a pop-up asking for permission to track behavior for ad sales.
If users opt out, Apple cuts off that app from receiving a variety of data used by advertisers.
According to early reports, over 95% of iPhone users who had downloaded the update were opting out of ad tracking — thus, the prediction from Wehner that Facebook's ad revenue will take a $10 billion hit in the coming year.
"We can't be precise on this. It's an estimate," he said. "We're working hard to mitigate those impacts and continue to make
Facebook also reported its first-ever decrease in users, and parent company Meta's stock took a major hit as a result: It dropped from as much as 25% from $323 per share at Wednesday's close to $245 on Thursday morning, effectively wiping out $230 billion in market value overnight.
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