(#78) Apple Intelligence; AI in Investors calls; United Airlines is launching its own advertising network; on trade wars
Treating cancer with AI
Today’s menu
Apple’s AI strategy in practice (ie. WWDC 2024)
on Ferrari’s transformation
United Airlines is launching its own advertising network
on Trade Wars
Treating cancer with AI
Strategy
Apple WWDC 2024: Key Announcements and Insights
Apple, traditionally known for its conservative approach, often waits to observe competitors' innovations before releasing superior products. However, this cautious strategy doesn't seem to apply to AI. The company has announced several compelling updates at WWDC 2024 that are worth noting:
1/ Apple Intelligence
In alignment with insights from Newsletter #74, Apple introduced Apple Intelligence. What was surprising is that these AI capabilities will be available on the iPhone 15 Pro and newer models, as well as all Macs and iPads with the M series chips. This move is logical since the majority of Apple's revenue comes from iPhone sales, rather than Macs and iPads.
2/ Advanced calculator functionality
Surprisingly, one of the most cheered announcements was the new Calculator app. This app can perform advanced math, turning the iPad calculator into a real-time notepad for quick calculations.
3/ iPadOS
Unfortunately, iPadOS confirmed one of my theories: it pairs futuristic hardware with outdated software. This is a missed opportunity for Apple to fully leverage its hardware capabilities.
4/ OpenAI Partnership
Apple is partnering with OpenAI to enhance the AI experience across its devices, including improvements to Siri. This collaboration aims to bring more advanced AI functionalities to Apple's ecosystem.
5/ Tap to Cash
This new feature allows users to pay someone with another iPhone without needing their phone number or email address, streamlining peer-to-peer payments.
6/ macOS 18 features
One notable feature of macOS 18 is the ability to mirror your iPhone screen on your Mac, enhancing cross-device functionality and user convenience.
7/ On-device image generation
Apple announced on-device image generation capabilities, which was anticipated. This feature aligns with the growing trend of edge computing, emphasizing privacy and efficiency.
8/ New Password App
Apple introduced a new password app designed to enhance security. This move could potentially render some startup solutions obsolete, as incumbents continue to innovate.
9/ Vision Pro 2.0
Finally, Apple unveiled the Vision Pro 2.0 Mac widescreen, a significant upgrade likely aimed at professionals seeking advanced display capabilities. Announcement, OpenAI, Catch-up, WWDC 2024
🏎️ Ferrari’s transformation
This week I got the chance to see Mr. Benedetto Vigna, Ferrari's CEO, going through the lessons while transforming the company. I took 10 ideas from his presentation (but there are more):
1/ Embrace diversity and teamwork for scalability
The comparison between star and mesh networks illustrates that leveraging diverse connections and teamwork significantly increases network value and profitability. Encourage diverse collaboration to maximize potential.
2/ Integrate theory with practice
Managing complexity, he explained, highlights the importance of combining theory with practice. Effective management requires a blend of defined processes and agility, as well as aligning profit with purpose.
3/ Start immediately to gain momentum
The graph showing progress over time emphasizes that starting initiatives today, even if not fully prepared, leads to faster and greater advancements. Procrastination hampers growth.
4/ Promote scientific thinking in the workplace
Encourage employees to act like scientists by embracing values such as confident humility, continuous learning, enthusiasm, and a strong network. This approach fosters innovation and critical thinking.
5/ Prioritize soft skills in leadership
The focus on soft skills over hard skills underscores their importance in building effective leadership and organizational culture. Soft skills drive collaboration, empathy, and adaptability.
6/ Utilize the innovation compass
Ferrari's innovation compass identifies key traits like drive, curiosity, courage, humility, patience, focus, responsibility, and ambition. Cultivating these qualities can steer your team toward innovative success.
7/ Combat arrogance to foster growth
The concept of "fighting the squaring of the circle" indicates that overcoming arrogance and the status quo requires energy and effort. Encourage humility and openness to new ideas for continuous improvement.
8/ Establish clear guiding principles and behaviors
The six guiding principles - collaboration, continuous learning, confident humility, focus, fearless organization, and will progress - paired with specific behaviors, provide a framework for consistent decision-making and actions.
9/ Value and develop your talent
The emphasis on selecting pioneers with a mix of talent and MBA qualifications highlights the need to invest in and develop diverse skill sets within your team. This approach ensures a well-rounded and capable workforce.
10/ Combine profit with purpose for sustainable success
Aligning profit with a clear purpose ensures that business goals are not only financially driven but also meaningful and impactful. This balance fosters long-term sustainability and stakeholder satisfaction.
United Airlines is launching its own advertising network
Why? I have at least six ideas:
1/ United Airlines' decision to launch its own advertising network, Kinective Media, is primarily driven by a need to diversify its revenue streams. The airline industry is known for its cyclical nature, heavily influenced by economic downturns, fuel price fluctuations, and other external factors. By expanding into the advertising sector, United aims to stabilize its income, reducing its reliance on the more volatile passenger and cargo transport sectors. As highlighted by United's CFO, this move is intended to make the business less susceptible to industry downturns and create a more robust financial foundation.
2/ Another significant factor in this decision is the airline’s ability to leverage passenger data for personalized and targeted advertising. United collects extensive data on passenger travel behaviors, which Kinective Media can utilize to deliver highly personalized, real-time ads. This data-driven approach increases the effectiveness and relevance of the advertisements, making them more appealing to consumers and, consequently, more lucrative for advertisers. The unique, captive audience provided by in-flight entertainment systems and the mobile app offers advertisers an environment with minimal distractions, enhancing engagement.
3/ Strategic partnerships and market potential also play a crucial role in United’s new venture. Kinective Media has already established collaborations with major brands such as Norwegian Cruise Line, Macy’s, and IHG Hotels & Resorts. These partnerships not only enhance the credibility of the ad network but also make it more attractive to both advertisers and consumers. Being the first airline to introduce such a network gives United a first-mover advantage, potentially setting the standard for others in the industry to follow.
4/ The move aligns with broader market trends in advertising, which are increasingly focusing on digital and targeted ad campaigns. Advertisers are continually seeking more effective ways to reach their audiences, and platforms offering personalized ads based on user data are in high demand. Kinective Media taps into this trend, positioning United at the forefront of a rapidly evolving advertising landscape. This alignment with market trends makes Kinective Media an attractive proposition for advertisers looking for innovative and effective advertising solutions.
5/ Enhancing the customer experience is another key consideration for United. Personalized content and offers, if executed well, can significantly enhance the passenger experience by providing relevant and useful information. This can lead to improved customer satisfaction and loyalty, as passengers feel more valued and catered to. Moreover, offering an opt-out option ensures that customers who prefer not to receive personalized ads can avoid them, helping to maintain customer trust and mitigate potential backlash.
In summary, the consumers are “trapped” waiting to go from A to B. Why not leverage this to the max? LINK
Trade wars
We have discussed in previous newsletters that the 1st China shock was in the 2000s when the significance of the industry moved from Western Europe to China. Why? A cheaper workforce and no limited pollution rules. In the meantime, the country had an economic theory that they would grow through real estate (private and governmental), which, proved, of course, wrong and which probably will take years to recover…of ever.
With its leadership favoring manufacturing over services, the next growth phase means producing everything (ie. becoming the “build everything country”) which will also mean the total deindustrialization of the entire world. On what? EVs, drones, batteries, solar panels, computers, etc.
In this context, Brazil started to apply tariffs. The US and the EU will follow this summer.
What will be China’s answer? Sell to the rest of the world.Brazil, US, EU, Financial Times
Artificial Intelligence
AI in Investors call
Are you really a company (any type) if you don’t mention ‘AI’ in the investor's calls?
Coral AI
Somebody build an AI model that listens for clues in coral reefs. LINK
Treating cancer with AI
Treating diseases, particularly cancer, is challenging because each person's body responds differently to treatments. Scientists at the National Institutes of Health are now leveraging AI to help doctors predict which treatments will be most effective for individual patients. In a recent study, researchers demonstrated that they could accurately forecast the success of immunotherapy drugs, which use the body's immune cells to combat cancer. While this treatment is only effective for about 20% of patients on average, it can be life-saving when it works. The AI model utilizes data from simple blood tests, considering factors such as age, cancer type, and previous treatments, thus avoiding the need for invasive procedures. It also predicts patient survival outcomes, although further studies are needed to confirm these results.
This AI advancement is part of a broader trend of integrating AI into healthcare, leading to numerous breakthroughs. AI models are now capable of interpreting medical scans, developing new drugs, and assisting in surgeries. For instance, the startup Eko Health uses AI-powered stethoscopes to detect heart murmurs and heart disease. The AI healthcare market is expanding rapidly, with an anticipated growth rate of over 38% annually, potentially reaching $188 billion by 2030. LINK
Things Happen
China is losing the Chip War. LINK
The new propaganda war (ie. led by Russia and China). LINK
California is not really a democracy. LINK
Some deals are unlikely: Apple and OpenAI. LINK
Poor body health is a more pronounced manifestation of mental illness than poor brain health. LINK
The New Yorker has a piece on Constantin Brancusi’s legacy. LINK
Data
Lithuania
This is what happens when you are a 2.8m country and you receive global players in finance (ie. Revolut). Of course, this is a good thing for the country.
The semiconductor industry
The semiconductor industry has seen a dramatic geographical shift between 1990 and 2022. In 1990, the United States and Europe accounted for a dominant 81% of the world's manufacturing capacity for chips sized 200mm and above. However, by 2022, their combined share had plummeted to 18%.
Conversely, the East Asian countries of Japan, South Korea, China, and Taiwan have significantly increased their presence in this sector. Their combined share of the global manufacturing capacity for these chips surged from less than 20% in 1990 to 76% by 2022. LINK
GDP per capita ($) France vs. USA
In 1980, France's GDP per capita was marginally higher than that of the United States. However, by 2023, France's GDP per capita has fallen below that of Mississippi, the state with the lowest income in America.
This significant shift highlights some undeniable good and bad economic decisions. LINK
Outside Interest
Tokyo’s solution to solve the falling birth rate: a dating app. LINK
Across Andalusia on horseback. LINK
The largest white ancestry in every US county. LINK
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