Did Apple Just Kill Social Apps?
Published On Oct 2, 2024, 10:44 AM
The article discusses a significant change in Apple's iOS 18 which alters the permissions for sharing contact lists with apps. This change could hinder the growth of new social and messaging apps, which have historically relied on contact synchronization for viral growth. Developers express concern that these alterations will make it especially difficult for new entrants in the app market to gain traction, thus benefiting established social platforms like Facebook and Instagram that already have a significant user base and do not need to request permission for contact access.
Stock Forecasts
META
Positive
As Apple's changes make it harder for new social apps to succeed, this could bolster the market position of existing social media companies, particularly Facebook and Instagram. Investors might increasingly view these stocks as safer bets with potential for stable growth due to reduced competition.
SNAP
Negative
The restrictions on contact sharing may lead to slower growth for emerging app developers, impacting their stock performance if publicly traded. This could result in negative sentiment towards tech startups in this space, potentially leading to declines in their stock values.
AAPL
Negative
As the shift in contact-sharing permissions becomes evident, companies like Apple may face scrutiny and regulatory challenges, which could affect their stock performance if concerns rise over user privacy and competitive practices. However, since Apple is a strong player in the tech sector, the overall impact might be moderate.
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