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  • Thursday's Pain: Spain Will Hardly Be Contained [View article]
    Did somebody watch My Fair Lady last night?
    Apr 29 10:56 AM | Likes Like |Link to Comment
  • Is Tata's Nano the New Yugo? [View article]
    Recess is over. Please return to the classroom, as today the teacher is covering capitalization and punctuation. If you pay attention, you will receive a snack. Good boy.
    Mar 29 03:50 PM | 2 Likes Like |Link to Comment
  • War With Apple Will Push Google to $300 [View article]
    I enjoy your Apple analysis which is usually insightful. Your Google analysis leaves much to be desired.

    Would you put all or most of your eggs in one basket, even one as good as Google? Would Steve Jobs sell his Disney stake and plunge it all into Apple?

    Profitable Innovation:
    Google appears to have each of its fingers and toes in a different pie. It's simultaneously scary and fascinating. Many of these efforts are geared towards broadening or supporting its core advertising business, and I'm guessing that more than one of them will work out well.

    Mobile Search Competition:
    iPhone is not the only smartphone out there. At the moment, Android is more of a growth story than iPhone. Google might not dominate mobile search the way it dominates desktop search, but it won't be hurting.

    Brand Trust:
    Google seems to be treating its smartphone like Apple treats AppleTV—a hobby. For all the hype, the sales numbers suggest that it flopped. I hope it does well, because the idea behind the device is to tweak the wireless business model and transfer a bit of power from the carriers to the consumer (and Google, of course). Nevertheless, while Google certainly wants its smartphone to do well, it is far more interested in ensuring Android's success. I'm sure it is happy that the Motorola Droid reached one million units sold faster than the iPhone.

    Anyway, when people think of the Google brand, is Nexus One the first thing they think about? I'm not sure the brand was hurt that much.

    Terabytes of stories have already been written about the hows and whys of the Google-exiting-search-... story, and I have nothing worthwhile to add. On a big-picture level, I think Google's decision will eventually be considered trendsetting. They will be among the first of a gradual exodus of Western corporations from China.

    China, Inc.'s business model is this: attract Western corporations with the country's growth story and cheap labor; establish joint ventures with the corporations; steal their intellectual property; develop and grow domestic brands and businesses using stolen IP; establish dominant domestic share by whatever means necessary; and export what is essentially a Western product to the West as a Chinese-branded product. This model does not work in every sector, but China, Inc. will certainly strive to achieve its goal wherever it can. Or it can go the more direct route of corporate espionage.

    We're still in the early stages, so the Western corporations are still making a bunch of money. However, one day we will see Chinese equivalents of all the global multinational companies, including a Chinese equivalent of Apple. What is Jobs going to do, file a patent infringement suit in Beijing? Perhaps only Coca-Cola and Yum Brands, with their trade secrets, can hold their own (unless they hire Chinese citizens as CEOs).
    Mar 24 02:53 PM | 1 Like Like |Link to Comment