Despite Apple’s WWDC 2012 announcement of its integration with Facebook for an upcoming version of its iOS software, the social network’s stock continued its decline on Thursday as it fell 50 cents or 1.9% closing at $26.31 -- a decline of 31% from its IPO price of $38.
Investors hoped Apple’s announcement, which reportedly will allow iPhone and iPad users to update their Facebook statuses by just talking to their devices, would provide the social network some badly needed momentum after a rocky IPO and a series of subsequent disappointing weeks.
But so far, the enthusiasm has failed to materialize – at least among investors. Facebook has faced a string of bad news regarding its revenue model as General Motors and then retailer JC Penney announced they would stop using the social network’s advertising vehicles (Facebook Ads and Facebook Commerce) as they found them innefective to increase their sales.
Apple and Facebook’s integration, as well as the announcement that Apple will ditch Google Maps by launching its own maps application, is supposed to be part of a plan by the late Steve Jobs of taking down Google by destroying “stolen product” Android.
However, given Facebook’s disappointing IPO, should Apple continue with the integration? There is a risk that the social network ceases to stay relevant among a younger demographic; and since Apple's trademark has always been innovation, doesn’t the Cupertino company risk damaging its brand by associating its upcoming software upgrade to a potentially fading online trend?
What would Steve Jobs do?