Why has Elon Musk declared war on Apple?
Apple has also threatened to withhold Twitter from its App Store, but won’t tell us why
— Elon Musk (@elonmusk) November 28, 2022
To understand why Musk has decided to target the maker of the iPhone, iPad and >Mac First you have to understand the problems that Twitter is going through. The tycoon acquired The social network a little over a month ago at a price much higher than what was valued. Since its inception in 2006, Twitter has had profitability problems and has never achieved figures comparable to rivals such as Facebook , Instagram or Youtube. p>
Loss of advertisers
Their business model is based on advertising, but Musk wants to change that and boost revenue from subscriptions. The debt of more than 12,700 million that it contracted with the banks to be able to buy Twitter makes the need for the social network to start earning more money even greater. It is for this reason that he announced the launch of a payment plan of 8 dollars a month with which the user could buy a better experience on the social network as well as as your blue account verification pin. That change not only failed to achieve Not only did it capture enough users but it also sped up the process. identity theft, confusing users more and more. These impersonations affected the reputation of many companies that advertised on Twitter.
The chaos generated forced the This prompted Musk to stop that payment plan, but many companies began to withdraw or reduce their advertising investments on the platform, doubly hitting their business. Musk's decision to reinstate previously suspended accounts and his downsizing of content moderation staff on the platform have also led to an uptick in hate speech, a situation that is not uncommon. n that also makes brands uncomfortable, who prefer to live in digital spaces where debate is healthier. Thus, according to the American radio channel NPR, Twitter has already lost half of its main advertisers, which in 2022 alone have spent 750 million dollars on the network.
What's new? What about Apple?
In the midst of this uncertain situation, Musk has gone on to charge Apple, accusing it of wanting to withdraw its advertising from Twitter. Although the Cupertino company has not confirmed this supposed intention, the reality is that if it decided to cancel its advertising investment that would mean a major setback for the social network. And it is that Apple allocates some 100,000 million dollars a year to advertise its products and services on the platform that Musk now leads, being a key source of income for the tycoon.
The key to the attack Apple is here. on another matter. In 2008, the tech giant created the company – the App Store, the digital store where you can download all kinds of applications for the iOS operating system, which is used by all the brand's devices. Apple forces all developers who want to be in the App Store to pay a commission of between 15% and 30%, a condition that multiple companies have denounced as an abuse of power and that regulators such as those of the European Union (EU) are investigating and have already sanctioned.
This tax toll, which was reduced in January of last year to Developers who make less than a million dollars a year from the App Store is an essential part of Apple's business. While that commission is not “secret,” as Musk has falsely pointed out, it is. This directly affects the mogul's plans to launch a paid version of Twitter. And it is that, after that commission, the 8 dollars a month that Musk wants to establish would remain at about 5.6 dollars per user, further limiting the impact of an already limited plan and putting in trouble to its owner.