"Meanwhile, Apple is reportedly plugging away on a foldable iPhone, and Meta is staking its claim in AI-integrated smart glasses via a deal with Ray-Ban. The thing is, hardware is really hard. That foldable iPhone? It was supposed to be out by next year, but now probably won't be released until 2027 at the earliest. And OpenAI and io are facing technical issues that will delay their yet-to-be-revealed AI device."
"Some advertisers are therefore cautiously pulling back until they can be more confident that the new version will operate the same as the original TikTok. The US market is important for TikTok. US ad revenue made up almost half of the company's global revenue in 2024. But as new AI video platforms like Sora and Vibes come on the scene, TikTok's future looks more tenuous than ever. If people end up spending less time on TikTok, the app will become less valuable to advertisers."
Claims of an imminent hardware revolution are meeting practical engineering delays and obstacles. Apple’s foldable iPhone is delayed and unlikely before 2027, while OpenAI and io face technical issues delaying their AI device. Consumer adoption of VR headsets remains limited, with most Americans unlikely to have seen Oculus or Apple Vision Pro use. The push for new hardware is partially driven by a need for fresh advertising canvases as web-based ad environments shift. TikTok faces uncertainty over a U.S. version, causing advertisers to pull back amid concerns about ad operations and revenue concentration. Emerging AI video platforms like Sora and Vibes threaten TikTok’s user engagement and advertising value.
Read at AdExchanger
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