[HN Gopher] Apple's deal with Google is lucrative, but it's hard...
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       Apple's deal with Google is lucrative, but it's hard to square with
       its values
        
       Author : retskrad
       Score  : 57 points
       Date   : 2021-08-29 15:06 UTC (7 hours ago)
        
 (HTM) web link (www.inc.com)
 (TXT) w3m dump (www.inc.com)
        
       | runjake wrote:
       | Apple's values are to make as much money as it can.
       | 
       | Part of Apple's business was, until recently, marketing itself as
       | a privacy-oriented company. That does not mean it _is_ a privacy-
       | oriented company.
       | 
       | It's about as real as the old commercials from banks and
       | insurance providers where they market themselves as your best
       | friend or always being there when you need them, thereby easing
       | the consumer from their worries.
        
       | utopcell wrote:
       | Apple's net profit was $57.41bn in 2020 [1] and that 15% is of
       | course pure profit.
       | 
       | 26% of Apple's profit comes from Google.
       | 
       | [1] https://www.statista.com/statistics/267728/apples-net-
       | income...
        
         | jsnell wrote:
         | Note that you're not comparing the same time periods there.
         | That is 2020 total profit to the estimated 2021 search revenue.
         | Apple's profits are going to be substantially higher in 2021.
        
       | samfisher83 wrote:
       | >I think we can all agree that $15 billion is a lot of money.
       | Apple is absolutely in the business of making money, and it's
       | very, very good at it. I'm just not sure anyone thought the
       | company was willing to put a price tag on privacy
       | 
       | All these companies care about is money.
        
         | threatofrain wrote:
         | Companies can have different values in a statistical sense, but
         | I'm not sure that accepting money from Google is a user hostile
         | move; the alternative big search provider would be Bing.
         | 
         | People here talk about DDG but the search quality has never
         | been there for me.
        
           | [deleted]
        
         | 2OEH8eoCRo0 wrote:
         | Why do they turn down government/defense contracts then? It's
         | more complicated than that and humans aren't always logical
         | anyway.
        
         | eplanit wrote:
         | Yes, and _that_ "squares with its values". Thinking that Apple
         | (FAANG) have "values" other than that are falling for the
         | marketers illusion.
        
           | mgh2 wrote:
           | It has _always_ been about money, don 't fall for their
           | marketing https://m-g-h.medium.com/why-we-are-
           | dispensable-7a577eba4f3e
        
           | ramesh31 wrote:
           | >Thinking that Apple (FAANG) have "values" other than that
           | are falling for the marketers illusion.
           | 
           | Apple _was_ different, and it all stemmed from Jobs. The tech
           | world lost a lot more than just innovative products when he
           | passed. Cook has done an incredible job at getting Apple to
           | where they are as a company, but they 've truly lost their
           | way in the meantime.
        
             | wutbrodo wrote:
             | Funny, I have roughly the exact opposite view of Jobs. To
             | me, he was a groundbreaking figure in creating massive
             | amounts of consumer surplus while having extremely anti-
             | user values.
        
               | oliv__ wrote:
               | If he had _" extremely anti-user values"_ don't ya think
               | there might be less..ahem... users of Apple products?
               | 
               | Have you considered the possibility that your opinion is
               | that of a minority.
        
           | politelemon wrote:
           | I think you've got a succinct explanation for what's been
           | happening over the past few weeks.
           | 
           | This illusion has been sustaining a brand loyalty for several
           | years while getting away with privacy contradicting moves,
           | and always being defended by its loyalists. I say loyalists
           | instead of customers to make a distinction.
           | 
           | What's happening now is the moves are becoming increasingly
           | egregious, and what we're seeing is a slight awakening to the
           | reality of the situation, that the 'stance' had been nothing
           | more than a grab for user control (in turn to sustain
           | profits)
           | 
           | At this point it's either abandon ship, or make petitions and
           | opinion pieces such as TFA.
        
         | ksec wrote:
         | >All these companies care about is money.
         | 
         | That is not the problem, at least as far as I am concern. They
         | have no problem with making money. We dont live in a
         | communistic world.
         | 
         | I have a problem with them pointing their fingers and using
         | media to start a cultural war against others, claims to have
         | moral high ground with their PR spin all while sucking up as
         | much money as possible _against_ their own so called values.
         | 
         | This is exactly the same as Google in early 00s. The we dont do
         | evil and self claim righteousness. Or Hypocrite.
         | 
         | So dont cry foul when all the other companies are working
         | together against you.
        
       | echelon wrote:
       | Apple doesn't give a damn about customer privacy. The image they
       | gained is just an illusion.
       | 
       | CSAM, Google deal, Macs phoning home...
       | 
       | They desire money and control and nothing else.
       | 
       | Wake up, Apple fans.
        
         | GeekyBear wrote:
         | >Apple doesn't give a damn about customer privacy.
         | 
         | In comparison to the alternative?
         | 
         | >Google not only made it difficult for smartphone users to keep
         | their location data private, but that it was a conscious
         | decision that came down the company's hierarchy, a set of
         | unredacted internal Google correspondence has appeared to show.
         | 
         | Business Insider adds that the documents reveal how Google
         | pressured phone manufacturers to keep the privacy settings
         | hidden because these were being frequently accessed by users.
         | 
         | https://www.techradar.com/news/google-accused-of-hiding-priv...
        
           | floren wrote:
           | It is possible to condemn Apple without implicitly praising
           | Google.
        
             | GeekyBear wrote:
             | On privacy, it's impossible to pretend that Apple is
             | anywhere near as intentionally terrible as Google is.
             | 
             | Google literally buys copies of everyone's credit/debit
             | card transaction data so they can spy on what you do in the
             | real world as much as they spy on what you do online.
             | 
             | >Of course, Google has been able to track your location
             | using Google Maps for a long time. Since 2014, it has used
             | that information to provide advertisers with information on
             | how often people visit their stores. But store visits
             | aren't purchases, so, as Google said in a blog post on its
             | new service for marketers, it has partnered with "third
             | parties" that give them access to 70 percent of all credit
             | and debit card purchases.
             | 
             | https://www.technologyreview.com/2017/05/25/242717/google-
             | no...
             | 
             | Google literally pioneered the privacy shredding
             | surveillance capitalism business model.
             | 
             | >As the pioneer of surveillance capitalism, Google launched
             | an unprecedented market operation into the unmapped spaces
             | of the internet, where it faced few impediments from law or
             | competitors, like an invasive species in a landscape free
             | of natural predators.
             | 
             | Surveillance capitalists quickly realized that they could
             | do anything they wanted, and they did.
             | 
             | https://longreads.com/2019/09/05/how-google-discovered-
             | the-v...
        
               | echelon wrote:
               | Both companies do shitty things.
               | 
               | Your adoration of a fruit themed capital construct is
               | empowering a company that is just as malignant.
               | 
               | I like Nintendo games, but I'm not blind enough to
               | overlook the horrible things they do to fans.
               | 
               | I get that it can be an almost religious or celebrity
               | experience for some, but don't be a single-party /
               | single-issue voter with your adoration of fruit. It's not
               | healthy for our freedom.
        
               | GeekyBear wrote:
               | > Both companies do shitty things.
               | 
               | Only one of the two companies intentionally buys copies
               | of everyone's credit/debit card data, intentionally hides
               | privacy settings from users, and intentionally ignores
               | those settings when users do manage to find them.
               | 
               | >Newly unredacted documents in a lawsuit against Google
               | reveal that the company's own executives and engineers
               | knew just how difficult the company had made it for
               | smartphone users to keep their location data private.
               | 
               | Google employees appeared to recognize that users were
               | frustrated by the company's aggressive data collection
               | practices, potentially hurting its business.
               | 
               | "Fail #2: _I_ should be able to get _my_ location on _my_
               | phone without sharing that information with Google, " one
               | employee said.
               | 
               | "This may be how Apple is eating our lunch," they added,
               | saying Apple was "much more likely" to let users take
               | advantage of location-based apps and services on their
               | phones without sharing the data with Apple.
               | 
               | https://news.yahoo.com/apple-eating-lunch-google-
               | employees-0...
        
       | ramesh31 wrote:
       | They really should just roll their own search. It doesn't have to
       | be better than Google, just good enough. They could easily do
       | something at the level of Bing, and I would use it exclusively
       | without thinking twice.
        
       | sverhagen wrote:
       | Isn't there a question about what technical abilities Safari
       | offers for advanced tracking of users? I'm on no one's side here.
       | But why couldn't they (even theoretically) sell the search engine
       | no. 1 choice to Google while still tightly controlling the
       | browser API as to avoid tracking abuses (presumable for all
       | search engines alike)?
        
         | wutbrodo wrote:
         | To narrowly answer the question "why": Anything that made
         | tracking meaningfully worse would reduce the aggregate value of
         | Google searches on Safari, which would reduce the expected
         | amount Google would be willing to pay them to be the default
         | search engine.
         | 
         | It's essentially the same question as "why couldn't they just
         | make DDG the default search on Safari": because it would hurt
         | their pocketbook
        
           | hnaccount_rng wrote:
           | I don't get that reasoning. The value of the searches doesn't
           | come from the abilities google has with them. At least not
           | primarily. It comes from the ability of iPhone _users_ to pay
           | for purchases. It is this purchase power that makes the
           | searches valuable to advertisers (and hence google). iPhone
           | searches are valuable because iPhone users tend to have
           | higher disposable income^.
           | 
           | Additionally I'd say that the number of users switching over
           | the search results of google vs DDG is approximately zero ;)
           | 
           | ^ Of course in second order there is an added value of being
           | able to subdivide iPhone users in smaller segments which
           | might add some value (to google). But I'd bet that loosing
           | out on >95% of those searches would be bad for google.
           | Especially strategically as a significant fraction of their
           | former income would then fund someone else's search engine
           | development. This sounds eerily like Intel's refusal to build
           | the chips Apple wanted, which pretty much funded TSMC's
           | technical advantage. And back then nobody knew that those
           | would go into a >200bn$/year product with 30% margins.
        
       | LatteLazy wrote:
       | I have much less of an issue with big tech companies than most
       | people seem to. That said, it drives me nuts when people talk
       | about a company's values. Apple, Google, Amazon, Walmart etc have
       | no values. Talking about them havibg values is like talking about
       | their hair colour. Apple isnt a person, its a corporation. It
       | makes money not life choices. It only cares about money it cannot
       | feel empathy or guilt or generosity or anger.
        
         | Tagbert wrote:
         | The people that make up a corporation can, collectively,
         | establish values for that corporation. This arises through
         | corporate culture and can be ratified by management. Many large
         | corporations document and promote a specific set of values
         | within the company. Corporations know that the values that they
         | adopt affect how their customers and employees see the
         | corporation and that impacts their loyalty to the corporation.
         | If a corporation compromises those values, that will have a
         | negative impact. This is analogous to how society responds to
         | individuals who express values and either follow those values
         | or depart from them.
         | 
         | Sometimes the values can be in conflict where the choices will
         | all have negative impacts and that can be tricky to navigate.
        
           | wutbrodo wrote:
           | Seriously. I hate to be a dick, but I don't get how it's
           | often possible to believe something that stupid (despite the
           | fact that many, many people do, especially on HN). This model
           | of corporations' decision as incapable of being influenced by
           | anything but maximizing profit in a vacuum is trivially
           | belied by examples like this[1].
           | 
           | (To head off the inevitable-but-nonsensical response that
           | averting an employee revolt helps the bottom line...that's
           | trivially true, but turns the statement into a tautological
           | one, defining a "corporation" as some formless void that
           | somehow doesn't include anyone making the decisions).
           | 
           | [1] https://www.nytimes.com > google-pentagon-project-maven
        
         | [deleted]
        
         | [deleted]
        
       | im3w1l wrote:
       | Apple is a company. A company is made up of a lot of people. Some
       | of who (really do) value privacy more, and some less. In addition
       | to that there is the corporate positioning and messaging where
       | they may take a certain position because it's currently
       | favorable.
       | 
       | Saying they 100% value privacy or 100% don't value it is too
       | simplistic. Even ascribing a consisent set of beliefs is too
       | simplistic.
        
       | iamgopal wrote:
       | 15 billion a year is not enough for google to create a competing
       | rival ?
        
         | diskzero wrote:
         | Google has created a competing rival to Apple in the mobile
         | market called Android. Am I not understandng your question?
        
         | jahnu wrote:
         | It would be a lot more than 15 if Android didn't exist
        
         | robotresearcher wrote:
         | Google has a competing product in just about every category.
         | Android, phones, tablets, laptops, always-on-music-players,
         | Google Assistant, App Store, media and game store, TV streamer,
         | watch* , even AirPod clones.
         | 
         | Google doesn't sell a workstation and big screen.
         | 
         | * OS-only, not first party HW IIRC.
        
           | lotsofpulp wrote:
           | > Google doesn't sell a workstation and big screen.
           | 
           | And does not sell in person customer support.
        
         | Jyaif wrote:
         | I don't really understand what is going on with Google.
         | 
         | They are paying Apple more than what they are spending on
         | Android.
        
           | [deleted]
        
           | Nasrudith wrote:
           | Simple - they don't see there being returns in throwing big
           | money at Android when it is already mature and doesn't have
           | any major areas that could bring returns. The niches are
           | carved out already and trying to make something configurable
           | to do both ends in compromises that don't leave them better
           | off.
        
       | laurex wrote:
       | I am literally a crusader against ad-based business models, but
       | this article seems very hand-wavey to me.
       | 
       | First off, Apple is in the privacy business as a product
       | positioning stance, not as an actual guiding force for their
       | business.
       | 
       | Second, Apple doesn't prevent anyone from using another search
       | engine as a default, and the vast majority of people are quite
       | comfortable using Google, even if it is completely shady on the
       | privacy front.
       | 
       | Third, these giant tech companies work together by design- they
       | all feed off each other due to the fundamental driver of
       | "shareholder value." Instead of having any expectation that they
       | will choose user safety and health over profit, we need to
       | explore other avenues to address the rampant and destructive
       | aspects of ad-driven tech economies.
        
         | utopcell wrote:
         | > they all feed off each other due to the fundamental driver of
         | "shareholder value."
         | 
         | Kudos for not resorting to hand-wavey statements yourself.
        
         | wayneftw wrote:
         | > Apple doesn't prevent anyone from using another search engine
         | as a default.
         | 
         | In Safari on iOS, where this deal is relevant, they do. There
         | is no choice for using Yandex or StartPage among many others.
         | There are just 5 choices.
        
           | laurex wrote:
           | I stand corrected (though they do offer DuckDuckGo, which
           | seems like the biggest 'privacy-oriented' player). Are you
           | suggesting that the deal with Google is responsible for the
           | omission of Yandex or StartPage, though? I would guess it's
           | for other reasons, such as user experience or reluctance to
           | vet and endorse less-frequently used engines.
        
             | wayneftw wrote:
             | Personally I would want freedom to just put whatever URL I
             | want, as my search engine. Every popular desktop browser
             | has this feature and I don't see why it could not exist on
             | the iPhone. I bet Apple would claim that it's "taking away
             | options to help people".
        
       | bilbo0s wrote:
       | May not be in line with its values, but it's certainly in line
       | with keeping the Feds off their back. I'd personally dare Apple
       | to kick out Google. Wasn't it partially that exact Damoclesian
       | situation that got Google on the Apple platform in the first
       | place?
       | 
       | Now don't misunderstand me. Google, along with FB, are probably
       | the worst monopolies out there. But Apple pulls a stunt like
       | that, I'm guessing the risk that the Feds would come at them
       | would be extreme. No one's going to allow Apple to control search
       | in addition to everything else, least of all the government.
       | 
       | One solution could be to force Apple to use to another provider?
       | Bing maybe? But that has all the same privacy problems.
       | 
       | But the "Apple makes their own privacy protected search engine
       | and it's default on every platform" option is a complete non-
       | starter. Just about everyone in industry and government would
       | demand action against that.
        
         | [deleted]
        
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