They already do "sell", in a very similar way as Google and Facebook does - look at their app store ads for example. Only real difference between Google/FB and Apple is that they process data on device, not on their servers. Sure, it's a huge technical difference, but not that much in terms of business and end users.
Google and Facebook don't sell your data directly, as it's bad business - you want to sell access to customers as a subscription to get big bucks. They have all the initiative to protect data they gather on their servers. Same as Apple has to do that on devices.
There're details to it, but just moving where you process user data isn't that much of a difference to end users - you're still a corporation selling other people ability to show me ads for cribs, when you discover that I'm expecting a baby.
And honestly, I'll take it. I have always been OK looking at ads if it funds the tools I use and the media I consume. I have always been OK with some amount of demographic and history-based ad targeting. I have no moral objection to some company gatekeeping advertiser access to my eyeballs and selling that access at a premium, especially if I'm already going to see ads everywhere anyway unless I go off-grid. I have no moral objection to using my demographics and general interests to show me ads for hiking boots instead of kung fu lessons.
I am not OK with companies storing, collecting, selling, etc. my data without my knowledge, consent, or legitimate ability to opt out. If the data doesn't leave my phone and all of the "targeting" happens on my own device, I can think of much worse compromise outcomes.
You may want to check on this belief more thoroughly, at least with Meta/Facebook as a start.
Meanwhile back on Planet Earth .....
Going by your argument you should not own any electronic device.
Because you should not be trusting Intel/AMD to make your CPU because they might have put spyware in it ....
Because you should not trust your keyboard manufacturer because they might have embedded a keylogger in it....
Because you should not trust your choice of OS because you haven't personally reviewed 100% of the source code and all subsequent patches for spyware ...
In the end, its about balancing risk vs reward. And frankly, especially in terms of privacy, Apple are far more trustworthy than the vast majority of other options out there.
I personally feel some sort of regulatory framework around data collection and sales is not too much to ask.
Normally I'd agree with you, but I think Steve Jobs has a long history of not giving a shit about what shareholders say because he was more concerned with delivering the perfect product to customers, so I'd like to think that Tim Cook has also carried this torch too.
Yes they are a for-profit company, I still get that... But everyone has been shouting "Just wait, Apple will become just like Google once they realize how juicy that data is to their bottom line!!" for literally decades, yet... Nothing.
You'd like to think that. I would too. But even if it's true, Tim Cook will not be there forever either. Publicly traded companies are owned by shareholders who can and will do what they want. The last half century of business is littered with the corpses of once vaunted corporate bodies stripped by investors.
Many moons ago I worked for a large online gambling provider. They worked tirelessly to make their company trustworthy, make their games entertaining, and build relationships with their high rollers. Internally, they had strategies to squeeze as much money from every user as possible without causing distress. It was quite eye opening and I can't help but draw parallels between them and Apple.
To me, anyone stretching over to apologize for Apple needs to give their head a wobble. They are just going for the profit, selling you the lie of privacy. They want to scan your photos, remember. They already gave the FBI the tools they need to unlock phones, and they are of course part of PRISM.
It's hardly any different than what Google or Facebook do except it's even more encompassing.
Anyone who seriously thinks Apple are going to turn into another Google or Facebook needs to give their head a wobble.
Look at, for example, their recent pro-privacy improvements to the App Store where developers are now forced to state in black and white what data their Apps collect.
Look at, for example, how pissed off Facebook were with recent privacy improvements in iOS. If Zuck is pissed off about a privacy improvement, then it must be a good thing !
If Apple didn't give a shit about user privacy and wanted to sell all your data, they would have done so a long time ago.
Fact is that Apple has many moats. One of their biggest moats is their stance on the privacy of their user's data. They know that if they backtrack on that, many people (including myself) would vote with their feet.