Patrick McGee Profile picture
San Francisco correspondent for @FT, covering Apple, adtech and hardware (drones and driverless cars). Previously with FT in Frankfurt and Hong Kong. 🇨🇦
otaria123 Profile picture ⛓ ▓▓ܐܲܠܵܗܵܐ Profile picture Jenise Huffman Profile picture 4 added to My Authors
Oct 31, 2021
*New*: @Apple’s privacy settings caused an estimated $9.85bn of revenues to evaporate in the second half of this year at @Snap, @Facebook, @Twitter and @YouTube, as their advertising businesses were shaken by the new rules

Average impact on revenue: -12%

*Thread* Lost revenues will extend into the next quarters as the advertising groups rebuild using a privacy-centric paradigm.

“New tools and frameworks need to be developed from scratch and tested extensively before being deployed to a high number of users,” says @eric_seufert
Read 4 tweets
Oct 28, 2021
A bunch of stats on @Apple earnings:

Finance chief Luca Maestri tells the @FT that supply constraints cost the group $6bn last quarter.

"components shortage" and "manufacturing disruptions in Southeast Asia caused by Covid," he said.

*Thread* No guide for Q1 but Maestri says “demand is very, very strong”.

"We expect to set a December quarter record in spite of the fact that these supply constraints - the way we see them right now - **we believe they're going to be greater than the September quarter, the $6bn**.”
Read 7 tweets
Oct 22, 2021
An *enormous thread* on alleged @Google @Facebook collusion based on the just-released *unredacted* complaint from the Texas AG. First filed December.

Anything PURPLE is newly unredacted.

Yellow/Orange is just normal highlights.

1/? Online advertising is enormous. Google's Exchange process processes 11bn online ad spaces / day.

Google says "more daily transactions are made on AdX than on the NYSE and NASDAQ combined."
Read 45 tweets
Oct 21, 2021
First Snap question is about Apple.... Wants to know if it'll take a quarter, multiple quarters or years to set a new-normal:

"This has definitely been a frustrating setback for us," @evanspiegel says.

1/? "With these new Apple changes, those tools were essentially rendered blind," @evanspiegel says. "You can only really measure your advertising results using the success parameters that Apple's already defined. The reporting is delayed for a significant period of time ...
Read 4 tweets
Oct 21, 2021
*Breaking* @Snap blames @Apple privacy changes for Q3 earnings miss and says Q4 revenues will come in between $1.16bn and $1.2bn, versus consensus estimate of $1.4bn.

*a Thread* Chief executive Evan Spiegel says: "the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS."
Read 10 tweets
Oct 19, 2021
🚨 Breaking 🚨 Scoop - @Activision tells all employees it has fired 20 people, reprimanded 20 more and will triple investments into training resources as it tries to clean up culture following allegations of pervasive sexual misconduct, gender pay disparity and more.

*Thread* Image Frances Townsend, compliance chief, tells @FT:
“It doesn’t matter what your rank is, what your job is. If you’ve committed some sort of misconduct or you’re a leader who has tolerated a culture that is not consistent with our values, we’re going to take action." Image
Read 5 tweets
Oct 17, 2021
Chart of the Day:

@Apple’s advertising business has more than tripled its market share in the six months after it introduced privacy changes to iPhones that obstructed rivals, including @Facebook and @Google, from targeting ads at consumers.

*A Thread* Search Ads now drives 58% of all iOS app installations that can be tied back to paid ads, according to @Branch, whose basket of data comprises 250 major apps including BuzzFeed, Instacart, Strava and Starbucks. That’s more than three times its 17% share a year ago
Read 6 tweets
May 3, 2021
Start of *thread*

Will tweet some of the more glaring exhibits in the @Apple-@Epic trial -- moving too quickly to offer (much) commentary. @Apple @epic
Read 37 tweets
Apr 30, 2021
Two mini-scoops in this Saturday @FT Big Read:

@Tencent has its own “an internal adaptation” to #CAID, the IDFA-workaround out of China, called QAID.

@glumobile got acquired b/c of IDFA/ATT implications.

A *thread* to expand on story here. Obtained documents from Tencent explaining how CAID and QAID work. The reason for its own IDFA solution, per someone familiar, is WeChat is big enough to do this on its own -- 1.2bn users. It doesn't need the China Ad Association.
Read 23 tweets
Apr 21, 2021
*thread* begins:

Sen Klobuchar said @Apple and @Google “operate at gatekeepers, with the power to decide how or whether apps can reach iPhone and Android users.” “Just because a company creates a successful innovative business that consumers like doesn't give it a free pass to harm competition or ignore our antitrust laws.”
Read 91 tweets
Apr 8, 2021
Overnight both @Apple and @EpicGames released hundreds of pages of new documents, containing lots of colour based on discovery and recent depositions. I stayed up reading so you don't have to. Here's what I learnt (couple *bombshells* in here) Epic argues that Apple’s App Store review process is “cursory” and that Apple doesn’t recruit reviewers with sophisticated tech backgrounds.
Read 23 tweets
Sep 28, 2020
Apple-Epic hearing started a few minutes early. “We are going to be hear for hours, I suspect,” says Judge Gonzales, who threatens to mute people if they regurgitate arguments she’s already aware of.

Thread begins... Gonzales begins by grilling Katherine Forrest - Epic’s lawyer - and says it’s not acceptable Epic hasn’t produced documents for discovery.

“Well, Apple has already produced. So, I find it to be convenient for you, not convenient for anybody else.”
Read 76 tweets
Sep 14, 2020
Last week I wrote about rampant app inflation in the @Apple App Store. Quick addendum, from the cutting room floor, via thread.

Apple: how app developers manipulate your mood to boost ranking via @FT Apple claims its store is curated and that they heavily invest to make sure apps work and that reviews are accurate. But it’s simple to find examples where 5-star reviews are bogus and the the star ratings are at best questionable and likely fraudulent.
Read 4 tweets
Sep 8, 2020
Apple counter-sues Epic -- 1/many. *thread from doc* @Apple @EpicGames

"Although Epic portrays itself as a modern corporate Robin Hood, in reality it is a multi-billion dollar enterprise that simply wants to pay nothing for the tremendous value it derives from the App Store." Epic 'rakes in billions by taking commissions on game developers’ sales and charging consumers up to $99.99 for bundles of “V-Bucks.”'
Read 12 tweets
Jul 30, 2020
1/Notes from my quick interview with Apple CFO Luca Maestri. A thread:.

“It’s clear to us our products are very relevant to our customers lives and the pandemic has them more relevant than ever before”

“Working from home, online learning — both trends are helpful.” 2/
“We grew revenue in every product category... Records for Mac, wearables, services ... and each geographic segment.”
Read 6 tweets
Jul 29, 2020
Tim Cook's testimony reads like the answer to a question nobody was asking. A quick thread...

@tim_cook @Apple He noted the smartphone market is “fiercely competitive”, as users can choose from a host of other handset makers including Samsung and Huawei, who each had a higher global market share in 2019 according to Canalys.

These points are valid, but arguably beside the point... 1/?
Read 8 tweets
Apr 30, 2020
No guidance from Apple for current quarter. Thread:

“We really didn’t feel there was enough visibility and certainty to provide guidance and frankly we didn’t want to do something that didn’t have much value for investors,” finance chief Luca Maestri told the Financial Times. 2. Earnings in March were hampered by “downward pressure” that extended into the first half of April, but in the last two weeks “we’ve actually seen an uptick”, Mr Maestri added, attributing the growth to the new iPhone SE and updates for the iPad and MacBook Air.
Read 4 tweets
Sep 24, 2018
I'm running a lot these days, which means I'm listening to lots of good books as well.
Quick thread on some @audible recommendations: 1. Coddling of the American Mind by @JonHaidt - the first 'applied' Cognitive-Behavioural Therapy book I've read. About the rise of safe spaces and 'call-out culture' on American campuses. Easy to condemn these (I do), but the book goes out of its way to explain how we got here.
Read 7 tweets