Investing 29-11-2022 22:07 14 Views

Elon Musk seems to have a problem with Apple: Is he right though?

Apple Inc (NASDAQ: AAPL) is in the headlines again after billionaire Elon Musk said the tech behemoth had threatened to scrape Twitter – the social network he recently bought for $44 billion from its App Store.

Apple has also threatened to withhold Twitter from its App Store, but won’t tell us why

— Elon Musk (@elonmusk) November 28, 2022

How Musk plans on responding

If executed, such a move will deliver a massive blow to Twitter Inc as it loses one of its primary distribution platforms.

Remember that Apple does have a precedent of removing “Parler” from its App Store for allowing posts that glorified Nazism and encouraged violence against people of certain ethnicities, races, and religions.

Interestingly, Musk plans on launching an alternative smartphone presumably with its own App Store if Apple indeed chooses to go in that reaction.

I certainly hope it does not come to that, but, yes, if there is no other choice, I will make an alternative phone

— Elon Musk (@elonmusk) November 25, 2022

According to Jim Cramer, though, he won’t be doing Twitter any favour by going against Apple Inc.

They crushed Facebook when they made it so you couldn’t [track users across apps and websites]. They can crush anybody.

Musk doesn’t want to share revenue with Apple

Musk also revealed in his tweets that Apple Inc has “mostly stopped” spending its ad dollars on Twitter. That’s another alarm since the iPhone maker just so happens to be the biggest advertiser on the platform.

Still, Musk went on to take an issue with up to 30% commission that Apple takes on all in-app purchases.

Did you know Apple puts a secret 30% tax on everything you buy through their App Store?

— Elon Musk (@elonmusk) November 28, 2022

That’s because he wants to turn Twitter into a subscription service in hopes of realising billions-of-dollars worth of boost to revenue – none of which he wants to share with Apple.

Reacting to the tech news on CNBC’s “Squawk on the Street”, Cramer said:

This guy is as wrong as you can get. He should look at where his people are coming from. The high quality people. They come from Apple. The argument is, do you want to do well – which means you pay the piper.

Apple Inc has so far not responded to Musk’s tweets.

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