As Apple Inc(AAPL.O) feuds with the U.S. government over iPhone privacy protections, the tech giant is also grappling with internal conflicts over privacy that could pose challenges to its long-term product strategy.
Unlike Google(GOOGL.O), Amazon(AMZN.O) and Facebook(FB.O), Apple is loathe to use customer data to deliver targeted advertising or personalized recommendations. Indeed, any collection of Apple customer data requires sign-off from a committee of three “privacy czars” and a top executive, according to four former employees who worked on a variety of products that went through privacy vetting.
Approval is anything but automatic: products including the Siri voice-command feature and the recently scaled-back iAd advertising network were restricted over privacy concerns, these people said.
Many employees take pride in Apple’s stance, and CEO Tim Cook has called it a matter of principle.
“Customers expect Apple and other technology companies to do everything in our power to protect their personal information,” Cook wrote in a letter explaining the company’s opposition to a government demand that it help unlock the iPhone of one of the shooters in the December attacks in San Bernardino, California.
Such policies also have a business rationale: Apple’s apparent willingness to sacrifice some profit for the sake of privacy bolsters its image as a company that protects customers.
It’s an easier stand for Apple to take than, say, Facebook or Amazon – Apple’s chief business to date has been selling devices rather than advertising or e-commerce.
But now, amid stagnant iPhone sales, Apple executives have flagged services such as iCloud and Apple Music as prime sources for growth – which could test the company’s commitment to limiting the use of personal data.
http://www.reuters.com/article/us-apple-encryption-privacy-insight-idUSKCN0WN0BO
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