Quick Takes on Uber, Apple/Qualcomm, Pinterest, Brexit, and More
May 1, 2019
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Marketing, economics, and finance professors from Harvard discuss Uber's struggles, Apple vs. Qualcomm, Pinterest's IPO, Brexit fallout, and TV shows about business. Topics include tech industry challenges, Brexit repercussions, TV portrayals, and the value of reading S1 documents. They also touch on a young artist's rise and a finance meme trend.
Uber's S1 filing highlights challenges towards profitability due to escalating expenses and slowing growth in ride-sharing.
Qualcomm's dominance in the modem chips industry was underscored by the settlement with Apple, impacting market dynamics and supply chain strategies.
Deep dives
Insights on Uber's Financial Situation
Uber's S1 filing revealed challenges towards sustainable profitability, with significant costs due to lack of economies of scale and market leadership. The document highlighted escalating expenses in new verticals like Uber Eats, pointing to struggles in achieving profitability. Despite touting autonomous driving as a future solution, historical tech transitions indicate unforeseen costs. The S1 underscored Uber's distance from profitability, raising concerns about its financial sustainability.
Challenges in Uber's Business Growth
Uber's S1 highlighted concerning trends like slowing growth in ride-sharing, particularly in key markets. The company's over-reliance on incentives for drivers and consumers contributed to mounting costs without significant profitability. While diversifying into new verticals like Uber Eats and Uber Freight, the lack of substantial profits and reduced growth in core ride-sharing business revealed challenges in sustaining market expansion.
Impact of Qualcomm-Apple Settlement on Business Dynamics
The settlement between Qualcomm and Apple resulted in Intel withdrawing from producing chips for Apple, significantly boosting Qualcomm's market position. This critical shift highlighted Qualcomm's dominance in the modem chips industry, limiting alternative options for tech giants like Apple. The competitive landscape and implications of the settlement underscored Qualcomm's strategic leverage and intricate global supply chain dynamics.
Pinterest's Business Potential and Risks
Pinterest's IPO raised questions about its business model and revenue sources, emphasizing its reliance on advertising revenue. The platform's unique focus on inspirational content and commercial value differentiation from other social media platforms garnered optimism. However, concerns arose over the sustainability of international growth and potential competition from established platforms like Instagram. Pinterest's IPO reflected a balance between user engagement and commercial viability, signaling both promise and fragility in its business prospects.
Youngme Moon, Felix Oberholzer-Gee, and Mihir Desai offer short takes on six different topics, including: Uber’s S-1, Apple and Qualcomm settling their lawsuit, Pinterest’s prospects as a public company, Brexit, and the best TV shows about business.
You can email your comments and ideas for future episodes to: harvardafterhours@gmail.com. You can follow Youngme and Mihir on Twitter at: @YoungmeMoon and @DesaiMihirA.