Apple CEO Tim Cook is clearly not a fan of the ad-supported revenue model. In an interview with Charlie Rose, the chief at Cupertino said Facebook was not in alignment with the users, due to the users being the product.

Most of Apple's own revenue comes from hardware sales, allowing them to be less aggressive on data aggregation for advertising. It allows Apple to offer free software updates and apps for customers.

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However, Facebook CEO Mark Zuckerberg is not in agreement with Tim Cook and had some choice words for how Apple does business, in a feature story for Time magazine:

"A frustration I have is that a lot of people increasingly seem to equate an advertising business model with somehow being out of alignment with your customers...I think it's the most ridiculous concept. What, you think because you're paying Apple that you're somehow in alignment with them? If you were in alignment with them, then they'd make their products a lot cheaper!"

Zuckerberg does have a point on the price for Apple products. Reports have shown the iPhone 6 only costs around $220 to build, giving Apple a good $400 - $600 profit on each device sold.

Apple is trying to incorporate more software value to the iPhone purchase, offering the free iWork suite and updates for two years. Things like WiFi Calls also look to reduce the cost of a monthly bill.

Both sides are not right; Facebook takes a lot of information from the user to sell ads, and Apple makes a huge stack of profit on each iPhone sale. Both sides are the most popular in their category though and it seems consumers are fine with both business models.

TagsTim Cook, Mark Zuckerberg, ad-revenue, hardware sales