Facebook Looks to Bruise Apple

Over the years, Facebook has proven to be a relentless competitor.  Remember how it effectively crushed MySpace, which was once considered the dominant player in social networking.

Not content with things, Facebook is moving against other big operators.  For example, it recently took on Groupon in the daily-deal business.

But now it looks like Facebook has even bigger ambitions – it wants to shake things up with Apple (Nasdaq:AAPL) in the fast-growing mobile segment.

Facebook has been working on Project Spartan, which is focused on a newfangled technology called HTML5.  Essentially, this allows rich experiences through the browser, and it’s also quite effective with mobile applications.

Keep in mind that Apple prefers users to download so-called native apps that are written in the company’s language, called iOS.  No doubt, it has been an effective way to create a thriving developer community.

So why is HTML5 important?  Basically, there is growing fragmentation in the markets.  When creating mobile apps, there needs to be development for multiple platforms, such as Google’s (NASDAQ:GOOG) Android, Research In Motion’s

(NASDAQ:RIMM) BlackBerry, and so on.  It’s a drain on resources.

But with HTML5, there only needs to be one app, which is accessible across many platforms.  This is the kind of thing that can mean lots of adoption.  Of course, it will certainly be helpful that Facebook is pushing on this – in light of its 700 million-user base.

It’s still a big stretch to say that the HTML5 trend will disrupt Apple, which has lots of momentum, especially with its iPad tablet. In fact, it looks like Facebook is close to launching an app for this platform, despite its resistance.

But over the next few years, there will be growing conflict between Apple and Facebook.  It’s inevitable — when Apple released its new version of its iOS, for example, there was full integration with Twitter.  Yes, it was a swipe at Facebook.

So a war is gearing up.  And the stakes are high.  Ultimately, mobile will be the next frontier and it will be a must-win for Apple and Facebook.

Tom Taulli’s latest book is “All About Short Selling” and he has an upcoming book called “All About Commodities.”  You can find him at Twitter account @ttaulli.  He does not own a position in any of the stocks named here.

Tom Taulli is the author of various books. They include Artificial Intelligence Basics and the Robotic Process Automation Handbook. His upcoming book is called Generative AI: How ChatGPT and other AI Tools Will Revolutionize Business.


Article printed from InvestorPlace Media, https://investorplace.com/2011/06/facebook-looks-to-bruise-apple/.

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