(#69) Apple Vision Pro goes B2B; Economic competition with China; Uber Eats launches its apps with a Tiktoky experience; and Smartphones in schools are bad
What does the transition to electric cars actually mean for the automotive industry? ( Part II)
Knowledge Partner: EY
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Today’s menu
Apple Vision Pro usage in business
Economic competition with China
Uber Eats launches its apps with a Tiktoky experience
The PC & Console Gaming Report 2024
Smartphones in schools are bad
My work
What does the transition to electric cars actually mean for the automotive industry? ( Part II)
Summarizing from Part I of my EV series, we are experiencing a once-in-century paradigm and platform shift that will bring (probably) new winners. The classic car with an internal combustion engine (ICE) was developed and perfected over at least 100 years. The traditional automaker’s competitive advantage lies in advanced proprietary engines, manufacturing, design, and (sometimes) distribution.
Let’s assume you have the money (ie. $5-10 billion), the design, and distribution. What you’ll need to make the EV will focus on 5 key areas: e-motor, battery, hypercasting, autopilot, and multimedia. Part I, Part II
Strategy
Apple Vision Pro usage in business
Revolutionary enterprise solutions harness spatial computing to tailor work environments, facilitate collaboration on 3D projects, offer customized employee training, and direct remote field operations in innovative ways. Here are four examples presented by Apple:
1/ Engineers at Porsche are now collaborating from different locations, using real-time data that integrates essential metrics such as speed and braking, with track conditions and live dashboard footage from the vehicle.
2/ The Engine Shop application by KLM Royal Dutch Airlines allows technicians to undergo training on the most recent engine models with high fidelity within their environment. Technicians can view the entire process they need to execute, step by step, with comprehensive repair guidelines superimposed on a 3D model of the specific engine.
3/ Resolve has innovated the way building engineers access necessary information for making decisions on infrastructures concealed within walls. Instead of relying on traditional paper blueprints, individuals can examine high-resolution plans and 3D models using Apple Vision Pro.
4/ SAP Analytics Cloud utilized through Apple Vision Pro enables users to organize essential business processes and applications within their physical environment, leveraging contextual 3D maps and visualizations to discover new insights.
Activate consulting estimates that by the end of the decade Apple will sell around 15m Vision PRO (and AIR?) annually. LINK
Uber Eats launches its apps with a Tiktoky experience
1/ This strategic move positions Uber Eats alongside a host of popular platforms like Instagram, YouTube, Snapchat, and Netflix, all of which have adopted similar short-form video features following TikTok’s explosive rise in popularity. The initiative reflects a broader trend in the tech industry, with platforms increasingly integrating video content to engage users and foster interactive experiences. (hint! video is a preferred medium over image and image is better than text)
2/ The implementation of this video feed within the Uber Eats app introduces users to a carousel of short-form videos right from the home screen, providing a curated selection of content from nearby restaurants capable of delivering to their location. This immersive experience is designed to emulate the sensory engagement of dining out, offering glimpses into the culinary process and the allure of new dishes. According to Verma, the initiative has already shown promise in encouraging users to explore unfamiliar cuisines and dishes, bolstered by the visual appeal of food preparation and presentation details. This approach benefits consumers by enriching their decision-making process and supports restaurants in directly reaching potential customers through the app, thereby enhancing their visibility and potential for increased orders. Uber Eats' enhancement of its platform with these videos—distinct from advertisements as they are freely offered to merchants—complements the existing trend of restaurants leveraging social media to attract new patrons, signaling a significant shift in how people discover and decide on their next meal. LINK
What can we learn from Netflix’s experience in India
1/The evolving dynamics of the global streaming market are vividly illustrated by Netflix's experiences in India, a narrative that not only highlights the company's current challenges but also offers a glimpse into its potential future. India became a critical battleground for streaming giants, where Netflix's traditional strategies are being rigorously tested. The backdrop to this examination involves the recent strategic maneuvers of Reliance Industries, helmed by Mukesh Ambani, and Disney under CEO Bob Iger, which have substantially shifted the competitive landscape. A notable development is the proposed merger of their Indian television and streaming assets, uniting JioCinema and Disney+ Hotstar. This move not only consolidates its dominance in the Indian streaming market but also starkly contrasts Netflix's position, with JioCinema and Disney+ Hotstar collectively dwarfing Netflix's subscriber base in India.
2/ The disparity in subscriber numbers - where Disney+ Hotstar alone boasts over ten times the user base of Netflix in India - is attributed to various strategic advantages, including the acquisition of streaming rights for live sports events, beneficial partnerships, and a pricing strategy more attuned to the Indian consumer's expectations. These factors highlight a broader issue for Netflix: the challenge of adapting its business model to markets with distinct consumer behaviors and preferences. Despite Netflix's significant investment in content and its attempt to localize offerings, as demonstrated by hiring prominent local stars like Kapil Sharma, the company struggles to translate these efforts into substantial subscriber growth in certain regions. This situation in India is emblematic of broader trends that Netflix faces globally, as it navigates a shifting media landscape where simply pouring money into content is not a guaranteed formula for success. The narrative unfolding in India serves as a critical case study for Netflix and other streaming services, suggesting that achieving global dominance may require not just financial investment but also a nuanced understanding and adaptation to local markets. LINK
Finally, China again
Probably the news of the week was the launch of the Xiaomi SU7 new car starting at $30,000.
Now, there are three lessons in this:
1/ The first economic shock in China happened in the ‘00s when Western companies moved production overseas. This transfer happened also with the knowledge transfer from Western to Chinese companies. As a result, sharing this know-how (most of the time illegally stolen) with other local companies made the Western one leave the market (e.g. Siemens, etc). LINK
2/ In parallel, the base for China’s economic growth was the real estate (public and private). Do you remember those highways going to nowhere? Anyhow, since this growth has ended with (unsolved) bankruptcies, now the government has a new plan: flood the market with manufacturing goods: EVs, batteries, solar panels, electronics, etc. LINK
3/ Looking at Xiami’s video on how their car is made you have very fast a deja-vu: Wait for a second, wasn’t that Tesla? Maybe we now have an answer to Tesla’s stock YTD. Xiaomi, Tesla
Without an industrial policy, EU and US car makers don’t have a chance against the Chinese competitors.
Artificial Intelligence
China using AI and fake accounts to sow division in the US. LINK
Spotify with…AI, of course.
Can you really name yourself a tech company if don’t announce that you have AI in it?
Here are my two key takeaways from this news:
1/ Spotify is advancing its innovative edge in the music streaming sector with the introduction of AI-powered playlist creation, elevating the personal listening experience to a new level of customization and interactivity. Unlike traditional playlist generation methods that might focus solely on genre or era, Spotify's AI playlists encourage users to experiment with a wide array of prompts: from whimsical scenarios like serenading a cat to crafting a soundtrack for surviving a zombie apocalypse. This broadens the horizon for user interaction, allowing for an imaginative and highly personalized approach to music curation.
2/ At the heart of Spotify's AI playlist feature is its sophisticated use of large language models (LLMs) designed to interpret a user's intent from their prompts, seamlessly integrating with Spotify's established personalization technology that tailors music recommendations to individual listening histories and preferences. Users can further refine their AI-created playlists through feedback commands, enhancing the adaptability and accuracy of the feature. The launch represents a significant step in Spotify's AI journey, building on its previous success with the AI DJ feature and demonstrating a continued exploration of artificial intelligence to enrich user experience. Spotify's strategic investment in AI, including collaborations with third-party technology for machine learning experiences, underscores its ambition to remain at the forefront of the digital music industry, offering users innovative ways to discover and enjoy music. LINK
Apple is advancing with its plan to deliver AI capabilities on its devices. LINK
AI costs
Google is considering introducing some fees for AI services…due to high costs. The end of free marginal costs is here and users will not like it. LINK
Things Happen
TikTok early product strategy breakdown. LINK
Rumor: Apple poised to unveil AI App Store at WWDC 2024. LINK
Battery swap for cars in China. LINK
How China beat everyone at the EV game. LINK 1; LINK 2
How Google lost ground in the AI race. LINK
The rise of Ozempic is good for the yogurt business. LINK
Data
Instagram generated almost 30% of Meta’s revenue in 2022. I guess this was the best well-paid $1 billion in history. LINK
Euro area unemployment at 6.5%. LINK
The PC & Console Gaming Report 2024. LINK
OKTA’s Annual Report 2024. LINK
Average annual wages in 2022 constant prices and local currency. LINK
Outside Interest
Smartphones in schools are bad. UNESCO, Matthew Yglesias
The report shows that some technology can support some learning in some contexts, but not when it is over-used or inappropriately used. In particular, the use of smartphones can disrupt learning in classrooms. One study looking at pre-primary through to higher education in 14 countries found that it distracted students from learning. Even just having a mobile phone nearby with notifications coming through is enough to result in students losing their attention from the task at hand. One study found that it can take students up to 20 minutes to refocus on what they were learning once distracted.
Removing smartphones from schools in Belgium, Spain and the United Kingdom was found to improve learning outcomes, according to a study cited in the report, especially for students that were not performing as well as their peers.
How and why VICE died. LINK
How the Matrix’s famous Agent Smith clone fight scene was filmed. LINK
Every launch of SpaceX. LINK
Camels crossing the sea. LINK
Robert Maddox, the engineer YouTuber who puts jet engines on absolutely everything. LINK
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