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So, Apple Can Be Earning Much More

Apr. 02, 2018 11:43 AM ETApple Inc. (AAPL)AMZN, META, GOOG, GOOGL125 Comments
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ALT Perspective


  • Tim Cook revealed that Apple could be making "a ton of money" if the company had chosen to utilize its huge trove of customer data.
  • Apple likely possesses more data than any of the technology companies and the information Apple has on its customers is also more valuable to advertisers.
  • How long can Apple stand firm on its principles before bowing to shareholders' pressure for higher returns?
  • Will the next CEO succumb to the lure of easy money and follow the footsteps of Facebook and Google?

Apple Could Be Making "A Ton Of Money" From Its Customer Data

By the time this article is published, readers should have already heard of the public backlash against Facebook (FB) sparked by its handling of user data. The episode was triggered by the fallout from the Cambridge Analytica data scandal. Tim Cook, CEO of Apple Inc. (NASDAQ:AAPL) shared his views on the matter during the March 27 Town Hall with MSNBC and the technology news website Recode. He revealed that Apple could be making "a ton of money" if the company had chosen to utilize its huge trove of customer data.

"If we monetized our customer, if our customer was our product, we could make a ton of money. We've elected not to do that."
- Tim Cook, CEO, Apple Inc.

Apple Likely Possesses More Data Than Other Tech Firms

The potential is there. Apple has plenty of loyal customers who share loads of information, both willingly and unwillingly, with the company through the use of its devices and iTunes. In fact, Apple likely possesses more data than any of the technology companies. Whatever is shared on Facebook by Apple users first goes through their Apple devices.

Whatever is searched on Google (GOOGL) (GOOG) on the same devices is probably captured by Apple as well. Technically, Apple can also be made aware of whatever is bought via the Amazon (AMZN) app, if it isn't already. Whatever is spoken to Siri is, without a doubt, processable by Apple for commercial purposes if it chooses to.

Apple's Data Quality And More Affluent Customer Base Means Greater Value To Advertisers

Most importantly, in what is generally recognized and is validated by surveys, Apple users have higher income levels and tend to spend more than Android phone users. That would make the information

ChartAAPL Revenue (TTM) data by YCharts

ChartAAPL PE Ratio (TTM) data by YCharts

This article was written by

ALT Perspective profile picture
I am honored to have been categorized as a 5-Star financial expert and ranked among the top 2% of financial bloggers on TipRanks in 2017/18. For a period, I was among the top 3 “Opinion Leaders” for Insider Ownership and Services, as well as top 5 for Long Ideas and Fund Holdings. I am an avid reader of market news and company publications with the aim of improving my investment acumen. I enjoy expressing my findings and opinions through writings. My appreciation and understanding of business strategies improved to a whole new level since completing an MBA (Distinction) from a FT100 MBA school. I have worked in companies with businesses that span multiple industries, according me with the exposure to a myriad of sectors.Check out my Author's Picks and over 190 Editor's Picks, among the highest in Seeking Alpha, if not the most.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in AAPL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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