No love for customers will compensate for a missing strategic moat. Sun placed its hopes on vertically integrated hardware + proprietary OS. Oracle bet on software, that once installed, had extremely high switching costs (similar to SAP). Strategy >> Love.
A friend of mine works in the chemical industry in Europe. One reason European producers are currently facing challenges is that Chinese producers are dumping chemicals into the global market at heavy discounts.
The underlying cause of this is that the Chinese housing market, which previously absorbed almost all chemicals, has effectively stalled (Evergrande, et al.).
I wonder whether we're observing a similar effect in the automobile industry as well.
Yes, but causality is backwards: the Chinese housing market stalled because China took the debt punch-bowl away from housing and gave it to the industrial sector.
It's also worth mentioning that loan subsidies play a bigger role in Chinese capital markets: Chinese industry is largely capitalized with state debt rather than private debt/equity or public markets. Zooming out, as a response to Trump's 1st term tariffs China went on a big autarky push by redirecting its citizens' and companies' deposits into a loan bazooka for the industrial sector. We are now seeing the fruits of that. The big questions have to do with (true) profitability and (true) balance sheets: can the new industries service their debts well enough for the government to hold face?
Are they actually dumping, or extraction/refinement of materials is actually much cheaper in China, so it feels like dumping?
Frankly, I don’t mind it, because western companies should also engage in this behaviour, if they can. Sell physical items for cheaper than it takes to produce them! They’re doing it with services and etc. anyways, might as well do it with physical products too.
One rough heuristic I use is people-watching on the subway. Just a quick glance from a distance at their phones. What are they actually looking at? (Yeah I know it's a bit nosy...)
I see: short-form video, WhatsApp/Messaging, YouTube long-format - in that order.
As a gamer this seems obvious to me. It's long been clear to me that our eyes are very adept at processing high-speed motion. Even the first 120Hz LCD gaming monitor, as sucky as it was, was miles bette than the 60 Hz on the market.
So while technically our eyes might not discern individual frames higher than 25 FPS or so, our brain can absolutely process data from a much higher effeice framerate. The motion blur fast thing naturally produce for example, provides critical context clues.
In gaming, sure 240 Hz won't help you see more as such, but it allows your eyes to do what they naturally do and give a much improved experience of fluidity and superior motion prediction.
I find this interesting - before we switched from 5/4 aspect ratio, it was hard to find the puck because the camera was always chasing - but if you know hockey (e.g., watch enough of it) there are a lot of cues about where the puck is or will be, now that we have a wider aspect ratio.
ARR drives startup valuations. For example people might argue if you have $100M ARR the startup is worth 10x, so $1B.
Now that’s a pretty good incentive to drive up ARR, no matter how.
Welcome to the world of creative accounting!
One-time projects? Count as ARR! 3 months contract with no extension? Count as ARR! You gave a discount of 50% for the first year? Make sure to count the full price as ARR!
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