The comparison highlights Meta’s sharp market decline over the past 16 months and the rift with Apple that disrupted Meta’s data collection strategy. Apple last year introduced a privacy option to its hugely popular iPhone. This prevented Meta and other online data collectors from obtaining user tracking information that previously relied on targeted advertising. That cut Meta’s profit in the third quarter of this year in half. Cost of the US company, which focuses on the Metaverse, a virtual world that users can interact with while disguised as digital avatars, also played a role.
Facebook’s parent company Meta may be in the big tech club, but it’s being overshadowed by “big tech” company and corporate foe Apple, says chief executive Head Nick Clegg said Wednesday. “There’s Big Tech and Giant Tech,” Clegg told an audience in Brussels. Meta was reaching out to policymakers with the latest virtual reality (VR) equipment. “So in terms of market capitalization, Apple is eight times as big as he is in Meta,” he said. “So it’s a very, very, very, very big thing, a huge technology sector, and Apple is,” he added Clegg.
Meta — renamed to reflect its focus — has spent a staggering $100 billion so far to build this technology, but it will take years to be widely adopted. It is also expected to take Meta announced last month that it would cut its 11,000 employees, or 13% of the company’s workforce. This has also led to job cuts at Twitter, Amazon and Hewlett-Packard. Meta’s market cap has fallen from an all-time high of $1.7 trillion in August 2021 to just over $300 billion today. This is a 72% reduction. Apple’s value has consistently exceeded $2 trillion over the same period since the end of 2020 and is currently around $2.3 trillion.
“By the way, don’t underestimate how aggressively Chinese tech giants are investing in the Metaverse,” he added, referring to the Pico marketed by ByteDance, the Chinese owner of the popular social app TikTok. I pointed out the VR headset. Meta’s own investment in VR and Augmented Reality (collectively referred to as XR or Augmented Reality) demonstrates his belief that “the biggest bet is the farthest bet, and technology is also the most expensive bet” Did’ said Clegg.
Meta has long complained that Apple is building a “walled garden” where users are trapped in devices, operating systems and app stores at the expense of Meta and other online players. Meta and Apple and other big tech companies have repeatedly come under regulatory scrutiny in the European Union and the United States as their commercial strategies clash with antitrust and privacy concerns. But Clegg said China is increasingly challenging US domination of the online world. “Right now, the big tech companies in the US and China are really all over the place,” he said.