Unprofitable WhatsApp May Hit Facebook’s Profitable Apps: Mark Zuckerberg

Facebook CEO Mark Zuckerberg has admitted that WhatsApp, the popular but unprofitable messaging application owned by his company, maybe cannibalising the time Indians spend on its other social media apps, posing a challenge to the American giant in its largest market. 

Digital industry analysts are of the view that WhatsApp’s popularity in India lies with people, who are coming online for the first time in smaller towns as well as its usability even in regions with low internet bandwidth. 

“Indians have really taken to WhatsApp with free messaging, the ability to easily share videos and photographs, and a lighter application that works in low-bandwidth areas,” said Sanchit Vir Gogia, founder of Greyhound Research. 

Facebook, on the other hand, is a heavy application and “has the nuisance of advertisements, and you can’t even decide whose updates you want to see”, Gogia said. 

[Economic Times]


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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