Facebook reported better-than-expected Q4 profit yesterday, with the increase in both MAU (advertiser’s customer” and revenue/MAU, which are statistics that investors care the most. So does Microsoft, with cloud computing lifted it up, but also brought two challenges: unpredictable large contracts and pushing-up costs. With Apple, it is the second largest public company in the world, just after Middle Eastern oil firm Saudi Aramc, $2B valuation and 2x Apple revenue.
China is threatening the US on the kingdom of AI development as the world’s most populated country has advantages in data and support from the government sector. First, China has a massive treasure trove of data collected from 1.4B people, more than any country in the world. Also, the government shows strong desire to the development of this sector by the national champions program. In 2017, the central government selected five leading tech companies as “national champions” in A.I., instructing each to pursue a specific avenue of A.I. research. In return for picking up the mantle, the champions receive government support, such as access to finance, preferential contract bidding, and sometimes even market share protection. Also, the government implemented talent acquisition strategies to attract AI talent from all over the world.
The second-largest companies in the world does this for 2 reasons. First, they need to minimize the price of iPhone in the world most price-sensitive market. Also, India stiffs 20% tariffs on imported products, which makes iPhone here among the most expensive worldwide. Local sourcing and manufacturing will reduce the selling price significantly. Second, investing in China is a back-up plan for Chinese among the tension of trade world with the US.
Huy Luu's business blog 