Apple – The Venmo Killer
Venmo is about to face unlikely competition, as this 14-second announcement wiped $14 billion from financial competitors’ market caps. Let’s dive into what happened.
On June 10, Apple introduced “Tap to Cash,” a new feature allowing iPhone users to exchange Apple Cash by simply holding their devices together. The announcement’s impact was immediate: Square and PayPal stocks dropped by 4%, while Visa, MasterCard, and American Express saw a 1% decline. In contrast, Apple’s stock rose by 7%.
The beauty of “Tap to Cash” is its simplicity. No more scanning QR codes or fumbling with usernames, users can complete transactions with a simple tap between iPhones. This seamless process, coupled with Apple’s dominant position in the hardware market, gives the company a substantial advantage in mobile payments (one reason why this feature has been dubbed “the Venmo killer).
However, Apple’s aggressive entry into the financial space could have unintended consequences. The company already faces a Department of Justice lawsuit for allegedly monopolizing the smartphone market. The introduction of “Tap to Cash” might provide additional evidence for those arguing to break up the tech giant, potentially intensifying regulatory scrutiny.
Costco X General Motors deal
Everyone knows Costco is the go-to for almost anything– from saunas to diamonds, they sell it all (even $2,000 blocks of gold)! These days, word on the street is that the retail chain is teaming up with General Motors to sell electric cars at a bargain.
Here’s the scoop – Costco is actually the largest car seller in the US, moving 500,000 cars annually. That’s one out of every 36 new cars sold in America. General Motors is relying on Costco to sell their electric cars, specifically the Chevy Equinox and Blazer. Why? Because when Costco endorses a product, its members buy it. Remember the Tommy Bahama Beach Chair? It became the top beach chair in America because Costco backed it.
But the most intriguing part is Costco’s negotiation power. General Motors has to prove to Costco that its cars are high-quality and can be sold at a low price to Costco’s 50 million members. If convinced, Costco will agree to sell the cars at a pre-arranged, no-haggle, low price.
So, what’s the takeaway? Costco is a tough negotiator, but it benefits its consumers. General Motors gets access to millions of potential buyers, and Costco members get great deals on electric cars. As we often say, distribution is destiny, and Costco owns the distribution.
AL-Olympics
With the Olympics only a few days away, this year’s games have a special twist. NBC is using an A.I. version of Al Michaels to provide daily 10-minute Olympic recaps on Peacock. This AI-generated content will be personalized to include the nations and sports you’re interested in, potentially creating up to 7 million different recaps.
It gets better – Al Michaels himself approved this venture, describing the A.I. impersonation as 98% accurate and a little frightening. This new feature could become the biggest technological advancement at the Olympics since they were first televised in 1936.
NBC’s strategy is clever: It’s not live and not long, which limits the chances of artificial intelligence errors, like mistaking Simone Biles’ achievements. This controlled environment makes it a perfect A.I. experiment.
Why does this matter? The world of Artificial Intelligence needs a positive, large-scale use case to shift public perception from fear to hope. The Olympics, a global event of peaceful competition, offers a perfect platform for this. Could this be a gold-medal moment for the future of A.I.? We’ll be tuning in to find out that’s for sure.
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