One month after taking control twitter For $44 billion, Elon Musk is still looking for a way to do the company’s business. social network Being profitable So, in a series of tweets, the richest man on the planet declared war on the most valuable tech company Apple on Tuesday, accusing it of pulling its ads from the platform, whether that’s true or not.
To understand why Musk decided to target the manufacturer iphone, ipad Y Match First of all, you should understand the problems Twitter is experiencing. The businessman bought the social network a little over a month ago for a much higher price than it’s worth. Twitter has suffered from profitability problems since its birth in 2006 and has never achieved figures comparable to its competitors. Facebook, instagram anyone YouTube.
advertiser loss
Business model, advertisementbut Musk wants to change that and increase revenue by: subscriptions. The more than 1,000 million debts it incurs to buy Twitter further increases the need for the social network to start making more money. Therefore, it announced the launch of a payment plan of $ 8 per month, where the user can buy a blue account verification password, as well as a better experience on the social network. Not only did this change fail to capture enough users, it also accelerated phishing and confused users more and more. These impersonations have affected the reputations of many companies that advertise on Twitter.
The resulting chaos forced Musk to discontinue this payment scheme, but many companies began to withdraw or reduce their advertising investments on the platform, doubling their business. Musk’s decision to improve previously suspended accounts and cuts in the content moderator staff on the platform also led to increased conversations. hateIt is also a situation that disturbs brands that prefer to live in digital environments where discussion is healthier. Thus, according to the American radio channel NPR, Twitter has already lost half of its main power. advertiserswho spent $750 million on the network in 2022 alone.
What about Apple?
Amid this uncertain situation, Musk continued to accuse Apple of wanting to withdraw its ads on Twitter. While the Cupertino company has not confirmed this alleged intention, the reality is that if it decides to cancel its advertising investment, it will be a major setback for the social network. And it’s an important source of income for the businessman, as Apple allocates nearly $100,000 million a year to advertise its products and services on the platform now led by Musk.
The key to the attack on Apple is in another matter. In 2008, the technology giant, app store, the digital store where you can download all kinds of applications for the iOS operating system used on all devices of the brand. Apple forces all developers who want to be in the App Store to pay a certain fee. commission up to 30%, a condition that more than one company denounces as an abuse of power; and European Union (EU) research. While this commission isn’t “secret,” as Musk incorrectly points out, it directly affects the king’s plans to launch a paid version of Twitter. And after that commission, the $8 per month Musk wants to install will remain at around $5.6 per user, further limiting the impact of the already limited plan and getting the owner in trouble.