Apple’s Diversified and Robust Business Model

About 2.5 years ago, I wrote a post discussing how Apple’s business model (monetization through hardware) better positions them for our coming AI-future relative to Google’s (monetization through advertising). I argued that despite Google’s leadership in AI, their ad-driven business model could potentially be damaged in an AI-centric world, limiting the (business) degrees of freedom for them to push AI adoption.… Read the rest “Apple’s Diversified and Robust Business Model”

Predicting the Potential of “New Electricity” by Looking at the Lessons of “Old Electricity”

Andrew Ng (former Chief Scientist at Baidu, Co-founder of Coursera) is fond of referring to AI as the “new electricity”. Similar to how electrification ended up transforming every single industry during the 20th Century, AI is broadly expected to have similar (if not greater) impact in the coming years.

This post by Oscar Li does a great job encapsulating Andrew Ng’s thoughts as shared during a recent lecture at Stanford.… Read the rest “Predicting the Potential of “New Electricity” by Looking at the Lessons of “Old Electricity””

What Apple, Google, and Facebook’s Business Models Tell Us About Their Ability to Adapt to the Coming AI-Future

 

Judging from market multiples, it’s clear the market is┬áskeptical of Apple’s ability to continue to succeed and has been for many years (currently, 1-yr forward P/E of ~15x despite recent re-rating), while holding limited concern for Google and Facebook (both 1-yr forward at ~26x).

This concern is understandable given the ever-changing tech environment and the long list of tech companies that have been buried over time (e.g.… Read the rest “What Apple, Google, and Facebook’s Business Models Tell Us About Their Ability to Adapt to the Coming AI-Future”