Mark Zuckerberg slams Apple over iPhone sales slump, but who’s really paying the price?

Mark Zuckerberg, CEO of Meta, has once again criticised Apple, accusing the tech giant of stagnation in innovation and operating a restrictive ecosystem that hampers competition. Speaking on Joe Rogan’s podcast, Zuckerberg addressed issues ranging from Apple’s reliance on iPhone sales to its App Store policies and closed ecosystem practices.

Zuckerberg expressed dissatisfaction with Apple’s progress since the release of the iPhone nearly two decades ago. He remarked, “Steve Jobs invented the iPhone, and now they’re just kind of sitting on it 20 years later.” According to Zuckerberg, declining iPhone sales reflect consumer fatigue with what he described as minimal upgrades between models.

He also noted that Apple has failed to introduce significant advancements comparable to the strides other companies, like Meta, are making in emerging technologies such as the metaverse and virtual reality. “It feels like they haven’t really invented anything groundbreaking in a while,” Zuckerberg said.

Criticism of App Store Fees

The Meta CEO took issue with Apple’s 30% commission on App Store transactions, commonly referred to as the “Apple tax.” He argued that this fee places an undue burden on developers and increases costs for consumers. “They do it by basically squeezing people and having this 30 percent tax on developers,” Zuckerberg stated.

The issue of App Store fees has been a contentious topic in the tech industry. Companies like Epic Games have legally challenged Apple’s policies, while regions like the European Union have pushed for reforms. However, Meta’s dissatisfaction with Apple’s practices is amplified by its reliance on apps such as Facebook, Instagram, and WhatsApp, which are subject to these fees.

Zuckerberg also criticised Apple’s closed ecosystem, which he claims stifles competition by preventing seamless integration of third-party devices. “They build stuff like AirPods, which are cool, but they’ve just thoroughly hamstrung the ability for anyone else to build something that can connect to the iPhone in the same way,” he said.

He cited Meta’s experience with its Ray-Ban smart glasses as an example. According to Zuckerberg, Apple declined to allow Meta to use the same protocols that enable AirPods to connect seamlessly with iPhones, citing security concerns. “It’s insecure because you didn’t build proper security into it. Now you’re using that as an excuse for why only your products can connect easily,” he added.

Zuckerberg also shared his thoughts on Apple’s Vision Pro headset, priced at $3,499. While he acknowledged Apple’s attempt to innovate, he argued that the device’s initial iteration falls short of expectations. “The Vision Pro is probably one of Apple’s bigger swings at trying something new in a while,” he said. “I don’t want to criticise too harshly since we’ve had early versions of products that weren’t great. But the first version of the Vision Pro definitely didn’t hit it out of the park.”

The rivalry between Meta and Apple has a long history, stemming from their differing business models and approaches to privacy. In 2021, Apple’s introduction of the App Tracking Transparency feature limited Facebook’s ability to track user data for targeted advertisements, prompting public criticism from Zuckerberg. He argued that the move harmed small businesses reliant on personalised ads.

Meta has also raised concerns about Apple’s approach to privacy and security. While Apple has positioned itself as a champion of user privacy, Meta has suggested that its policies are designed to prioritise profit and maintain control over its ecosystem. Zuckerberg’s remarks on Joe Rogan’s podcast underscore these ongoing tensions.

Despite his criticisms, Zuckerberg remains hopeful about the tech industry’s capacity for change. “The good news about the tech industry is that it’s super dynamic, and things are constantly getting invented,” he said. “If you don’t do a good job for like 10 years, eventually you’re just going to get beat by someone.”