Digital Winners & Losers: Samsung, Apple, Mark Zuckerberg & Facebook

The Most Powerful Person in the World

L2inc.com video above published Feb 1, 2018: Scott Galloway on Mark Zuckerberg / Facebook and Samsung / Apple and more--"who wields power over 2 billion people, can influence elections and public opinion, and traffics in one of the most addictive drugs known to mankind? Plus, an unlikely winner from Apple's iPhone success." 

Sources:
(0:21) F8 Facebook Developer Conference, April 2017.
(0:38) “The Top 20 Valuable Facebook Statistics – Updated January 2018,” Zephoria, January 2018.
(0:38) “Muslims And Islam: Key Findings In The U.S. And Around The World,” Pew Research Center, August 2017.
(0:38) “Global Catholic Population Tops 1.28 Billion; Half Are In 10 Countries,” National Catholic Reporter, April 2017.
(0:56) “The Decline in Adult Activities Among U.S. Adolescents, 1976–2016,” Jean M. Twenge and Heejung Park, 2017.
(1:00) “Why Teens Aren’t Partying Anymore,” Wired, December 2017.
(1:31) “Guess How Much Money Samsung Is Expected To Make Selling iPhone X Screens To Apple Next Year,” BGR, December 2017.
(1:40) “Samsung Display To Supply 180-200m OLED Panels For iPhone X Next Year,” The Investor, December 2017.
(1:46) “Samsung Electronics Announces Third Quarter 2017 Results,” Samsung, October 2017.
(1:50) “Guess How Much Money Samsung Is Expected To Make Selling iPhone X Screens To Apple Next Year,” BGR, December 2017.
(2:09) “Google’s Breakdown Of What Americans Don’t Know How To Spell, State By State,” The Washington Post, May 2017.
(2:09) “Walmart Reveals The Most Bizarre Top-Selling Items In Every State,” Business Insider, January 2018.

Transcript (auto-generated via YouTube.com):
00:00 [Music]
00:01 Who is the most powerful person in the
00:04 world who wields power over two billion
00:07 people and has proven influence over
00:09 elections and public opinion who also
00:12 manufactures and traffics in one of the
00:14 most addictive drugs known to mankind
00:16 increasing teen depression worldwide the
00:20 Zuck the most powerful man in the world
00:22 who doesn't have his finger on a button
00:24 all the hype around changing the
00:26 Facebook newsfeed to favorite content
00:28 from friends as a gesture towards
00:30 restoring democracy is just a big head
00:32 fake the Zuck would never do anything
00:34 that doesn't turn a profit Facebook has
00:37 assembled the largest community in the
00:39 history of mankind
00:40 and the individual overseeing this
00:42 community screwed over his friends in
00:44 college then over his best friend right
00:47 after college and spoiler alert isn't
00:49 concerned with the condition of our
00:51 souls or National Defense. A loser: teens
00:54 recent research reveals that teens
00:56 aren't hanging out in person or going to
00:59 parties in fact the number of teens who
01:01 get together every day has been cut in
01:03 half in the last 15 years the culprit
01:06 once again Facebook and other social
01:08 platforms you can't buy cigarettes or
01:11 vote until you're 18 or drink until
01:13 you're 21 why should we let our kids
01:15 have access to these platforms at age 13
01:18 please respond to me in the comments page
01:20 gating social media no Facebook or
01:23 Instagram accounts until you're 18 good
01:26 or bad idea an unlikely winner from
01:29 Apple's iPhone success Samsung the
01:32 Korean tech giant is the only supplier
01:34 for the iPhone 10 OLED screen samsung
01:37 expects to sell to Apple about 200
01:40 million iPhone screens and a teen
01:42 generating more than 20 billion in
01:44 revenue that's almost half Samsung's q3
01:47 revenue and the equivalent of selling 20
01:50 million of their Galaxy Note 8 phones. To
01:53 mark the National Spelling Bee Google
01:55 broke down America's most misspelled
01:57 words by state separately Walmart
02:00 released a list of its top-selling items
02:02 in every state which may or may not
02:04 explain some of the spelling challenges
02:06 sweeping across the country in
02:08 California where I'm from beautiful is
02:11 the most misspelled word
02:12 and protein powder is the best-selling
02:14 Walmart item people in Wisconsin
02:16 apparently can't spell Wisconsin but the
02:20 Green Bay Packers bathmat is the
02:22 best-selling item on the Bentonville
02:25 giant's site and in New Hampshire the
02:27 most misspelled word of 2016 was
02:29 diarrhea and the best-selling item at
02:32 Walmart is cinnamon flavored toothpaste.
02:35 Things were much easier when I was a kid
02:38 we only had 25 letters in the alphabet
02:40 nobody knew why we'll see you next week
02:53 [Music]

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iPhone Generation: Lonely & Depressed Losers? (video)

iPhone Generation: Lonely & Depressed

Video above published Aug 10, 2017 by L2inc.com--NYU Stern Professor Scott Galloway on digital winners and losers--

Loser: Unsustainable internet companies. Pureplays like Wayfair (domain: wayfair.com) and Blue Apron (domain: blueapron.com) are getting Amazon-like valuations without a critical component: a business that works.

Loser: The brand-industrial complex. Startup Brandless (domain: brandless.com) sells generic household items for $3 each, pointing to a larger shift in consumer behavior.

Loser: The smartphone generation. Three-quarters of American teens own iPhones (domain: apple.com/iphone), and the devices are making them more lonely -- but also less likely to do drugs.

Select slides:

Sources:
(0:13) “Meal-Kit Maker Blue Apron Goes Public, Demand Underwhelms As Amazon Looms,” Reuters, June 2017. http://reut.rs/2toDqYV
(0:13) “Pioneering Beauty Startup Birchbox Turns Profit After Tough 2016,” Forbes, April 2017. http://bit.ly/2fvh96f
(0:13) Google Finance, August 8, 2017.
(0:25) “New Amazon Data From Wall Street Should Terrify All Retail Stores In The US,” Business Insider, September 2016. http://read.bi/2bX6tG6
(0:30) “How Many Americans Are Amazon Prime Members?” The Motley Fool, April 2017. http://bit.ly/2fuXqmU
(0:30) “Share Of Internet Users In The United States Who Live In A Household With An Amazon Prime Subscription As Of November 2016,” Statista, November 2016. http://bit.ly/2vn3eob
(0:30) “Sixty-Four Percent Of U.S. Households Have Amazon Prime,” Forbes, June 2017. http://bit.ly/2usxrU8
(0:38) Value Investors Club, April 2016.
(0:43) L2 Analysis Of SEMRush Data, June 2017.
(0:47) “AMZN Cash Reserves,” Quandl, June 2017. http://bit.ly/2vIetIY
(0:53) “Burning Cash And Losing Customers, Wayfair Is Running Out Of Options,” Seeking Alpha, May 2017. http://bit.ly/2rqZ5dJ
(1:00) L2 Analysis of iSpotTV Data.
(1:12) L2 Analysis Of SEMRush Data, June 2017.
(1:31) “Blue Apron Significantly Lowers Its Valuation With Slashed IPO Pricing,” techcrunch, June 2017. http://tcrn.ch/2t1AIG0
(1:37) “Blue Apron Is Spending More Than $400 For Every New Customer — And That's Creating A Major Problem For The Company,” Business Insider, August 2017. http://read.bi/2vIHeVL
(1:45) “Form S-1,” Blue Apron Holdings, Inc., June 2017. http://bit.ly/2qGf2No
(1:50) “Blue Apron Vs. HelloFresh: A Look At Multiples And Valuation History,” CB Insights, June 2017. http://bit.ly/2uK03Dl
(1:50) “Blue Apron: 5 Things To Know About The Meal-Kit Delivery Company,” Market Watch, July 2017. http://on.mktw.net/2rtG3VH
(2:51) Cadent Consulting Group, 2016.
(3:42) “Have Smartphones Destroyed a Generation?” The Atlantic, September 2017. http://theatln.tc/2u3JDX6
(3:42) “Millennials Surpass Gen Xers as the Largest Generation in U.S. Labor Force,” Pew Research Center, May 2015. http://pewrsr.ch/1KAFrQ0
(3:54) “2016 Overview Key Findings on Adolescent Drug Use,” Monitoring The Future, January 2017. http://bit.ly/1WumBiz

Transcript via YouTube.com:
0:00  A loser: unsustainable Internet companies. Wayfair, Blue Apron and Birchbox are the
0:08  latest that have no sustainable strategy. These peer players are getting Amazon
0:12  like valuations without a critical component. That is a business that works,
0:18  or some sort of moat, that makes their companies scalable. For example,
0:22  warehouses within 20 miles of 45% of the population, or an incredibly robust
0:28  loyalty program with 58% of American households- yes, we're talking about
0:32  Prime. Wayfair's on track to double William Sonoma's eCommerce sales by 2019. Selling
0:38  low-priced items, they're competing with Amazon, which bids on 43,000 of the same
0:44  keywords. However, Amazon's cash won't run out. Meanwhile, Wayfair spending is
0:49  unsustainable. The company currently has more liabilities than assets. In exchange
0:54  for that massive spend, it's garnered no customer loyalty, even though the company
0:58  spent 72 million dollars on TV ads in 2016, and is slated to spend 90
1:04  million this year. Just 9 percent of search traffic comes from the master
1:08  brand term, compared to 30 to 50 percent from Williams-Sonoma brands. And they're
1:13  losing 60% of their customer base each year. By the way, the best proxy for brand
1:18  equity: look at the percentage of traffic garnered from key term brand searches.
1:23  Millward Brown and Ipsos: those businesses are going away. Blue Apron has a similar
1:28  story. In Q1 they lost 52 million on revenue of 245 million. The company has
1:34  an enormous acquisition cost; it spent four hundred and sixty dollars for each
1:38  new customer in 2016. Despite all those new users, Blue Apron's
1:43  revenue growth has been flat since Q1 of 2015. Their IPO down round was likely
1:48  the nail in the coffin. What Wall Street doesn't get? Paying high cost of customer
1:53  acquisition and investing insane amounts in fulfillment doesn't work when you
1:58  have 60 percent customer churn. At some point, like we saw with flash sites, there
2:03  will be a major correction in the marketplace. My advice to these companies?
2:07  While the market is drunk and asleep, grab its wallet and buy a real business,
2:13  as it will wake up, and it will be sober and irritable. A continued loser: the
2:19  brand industrial complex. The new startup, Brandless, competes with Amazon by
2:23  borrowing another of the Seattle giant's strategies: Private Label. And more
2:27  accurately: no label. But then again, if Brandless becomes popular, isn't Brandless
2:31  a brand? Mind blown. Brandless sells generic household items
2:36  from toothpaste to olive oil for just three dollars: yet another signal of the
2:40  death of the industrial brand complex, and is indicative of what is happening
2:44  in the larger consumer economy. Normally during a recession private label brands
2:49  take a larger share of CPG sales, as people are trying to save money and
2:53  don't want to pay more for the better known brand. During the recovery, however,
2:57  big CPG brands are able to use the normal levers of traditional advertising
3:02  and caps etc., they convince consumers to pay up for the premium brand. But things
3:08  are different now. There's been a structural shift, and despite a
3:11  recovery in the economy, private label sales continue to grow. We have entered a
3:16  new era; the sun has passed midday on brand building. A loser: the smartphone
3:22  generation. Three in four American teens now owns an iPhone. The impact? It's
3:28  making them more lonely. The data is clear: since the release of the iPhone,
3:32  the world has changed for American teens. Among other things, just 56 percent of
3:37  high school seniors in 2015 went on dates in contrast 85 percent of
3:43  Boomers and Gen Xers. To be fair, it's not all bad news.
3:47  Teens may be replacing drugs with their iPhones. Usage of illicit drugs, other
3:52  than weed, has fallen among eighth, tenth, and twelfth graders, to its lowest point
3:57  in 40 years. So teens are lonely, single, and addicted
4:01  to their smartphones, but not doing drugs. Progress? Maybe. My sons are getting their
4:07  first smartphones, and I told them they could have any ringtone, as long as it
4:12  was the sound of a tree falling in the forest or one hand clapping. In addition,
4:16  my smartphone is broken. Every time I use the home button, I find I'm still with
4:21  people I hate.

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Scott Galloway: Teens as a Forward-Looking Indicator (video)

Scott Galloway: Teens as a Forward-Looking Indicator

Published Apr 27, 2017 by L2inc.com: The best forward-looking indicator for brands? What teens are into this year? Chick-fil-A, Nike, and Snapchat.

Loser: Apple, which convinced 90 million Americans to buy iPhones but can't make them use those phones to pay for products.

Winner: road safety as ride-hailing apps prevent deaths from drunk driving.

Sources:
(0:07) “Teens Throw It Back To The ‘90s With Their Stan Smiths; Spending Shifting To Starbucks, Video Games And Amazon,” Piper Jaffray, April 2017. http://bit.ly/2p9LHxv
(0:24) “Teens Throw It Back To The ‘90s With Their Stan Smiths; Spending Shifting To Starbucks, Video Games And Amazon,” Piper Jaffray, April 2017.http://bit.ly/2p9LHxv
(0:45) “Number of iPhone Users in the United States from 2012 to 2016 (in Millions),” Statista, 2015. http://bit.ly/2pDB8U6
(0:48) “U.S. iPhone Ownership Reaches All-Time High on Strength of iPhone 7,” comScore, April 2017. http://bit.ly/2pDHcM7
(0:52) “An Inconvenient Apple Pay Truth” PYMNTS.com, April 2017. http://bit.ly/2oZ2mkp
(1:02) “Apple Pay Promised to Make Plastic Obsolete. Then Came Wary Shoppers, Confused Clerks,” The Wall Street Journal, April 2017. http://on.wsj.com/2oB9tT7
(1:14) L2 Analysis of Apple App Store data.
(1:19) “An Inconvenient Apple Pay Truth” PYMNTS.com, April 2017. http://bit.ly/2oZ2mkp
(1:28) “New York City Drunk Driving After Uber,” Jessica Lynn Peck, 2017. http://bit.ly/2oDpK9I
(1:35) “Impaired Driving: Get the Facts,” CDC, 2015. http://bit.ly/2j3EUBH
(1:43) “NONE FOR THE ROAD,” The Economist, January 2017. http://bit.ly/2qcq2oT
(1:52) “Uber Basks in Phenomenal SA Growth,” memeburn, February 2016. http://bit.ly/2p7ZlR4
Music: Say My Name (feat. Zyra) - Hayden James Remix http://bit.ly/1lgAHbQ

YouTube.com auto-generated transcript:
0:02  The best forward-looking indicator for brands?
0:03  What teens are into.
0:05  Teens spend more money on food than anything else,
0:08  including apparel.
0:10  Their favorite restaurant? Chick-fil-A.
0:12  Chick-fil-A? Really?
0:13  Taco Cabana or Cinnabon - that's a real fast food chain.
0:17  Athleisure is still in.
0:19  41% of teens cite an athletic brand
0:21  as their favorite clothing label,
0:23  up from 26% last year.
0:25  And their favorite social platform?
0:27  Snapchat.
0:28  I've been told in our comments, no joke,
0:30  that I look like Ryan Reynolds
0:31  when you sort of flick in and out
0:33  of a filter on Snapchat
0:35  and if you're on meth.
0:40  A loser: Apple.
0:41  The most valuable company in the world
0:43  convinced 90 million Americans to buy iPhones
0:45  but it's struggling to get them to use those iPhones to pay for products.
0:49  Just a third of Americans with Apple Pay-enabled devices have tried the service
0:53  and few ever use it again.
0:54  The number of people who used Apple Pay
0:56  more than once in a month
0:58  peaked in March of 2015.
1:00  Apple blames the poor adoption on retailers.
1:03  Let me get this.
1:04  Your PR executives went to the same graduate school as the executives at Pepsi and United.
1:09  It's your fault, retailers.
1:11  Anyways, only five of the 100 brands in our Specialty Retail study
1:15  accept Apple Pay.
1:16  But the real reason the service hasn't taken off?
1:18  Consumers prefer credit cards.
1:21  A winner?
1:22  Road safety,
1:23  as ride-hailing apps prevent deaths from drunk driving.
1:25  After Uber launched in New York in 2011,
1:28  alcohol-related traffic accidents fell by 25 to 35%.
1:32  Every day 28 people in the US die in alcohol-related crashes,
1:37  which account for a third of traffic-related deaths.
1:40  Uber's arrival could be even more meaningful in South Africa
1:44  where almost two-thirds of road deaths are alcohol-related,
1:48  the highest proportion in the world.
1:49  The company grew faster during its first year in Johannesburg and Cape Town
1:53  than London or San Francisco.
1:56  We leave you this week
1:57  with this stunning visualization of New York City commuter trips
2:00  created by Will Geary
2:02  set to my favorite DJ.

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Shapchat: Hottest Social Network for US Teens, Adult Users Increasing

Shapchat Sees Increase In Adult Users:

Kwame Opam, The Verge news editor, discusses "what's cool" among teens, and whether older people getting on Snapchat will ruin the app's popularity. Published July 6, 2016

Domain: snapchat.com

Funding & Valuation:
Snapchat raised $485,000 in its seed round and an undisclosed amount of bridge funding from Lightspeed Ventures. By February 2013, Snapchat confirmed a $13.5 million Series A funding round led by Benchmark Capital, which valued the company at between $60 million and $70 million. In June 2013, Snapchat raised $60 million in a funding round led by venture-capital firm Institutional Venture Partners. By mid-July 2013, a media report valued the company at $860 million. On November 14, 2013, The Wall Street Journal reported that Facebook offered to acquire Snapchat for $3 billion, but the cash offer was declined. Tech writer Om Malik claimed on November 15, 2013, Google offered $4 billion, but the offer was declined. December 11, 2013, Snapchat confirmed $50 million in Series C funding from Coatue Management. Four more funding rounds, from December 2014 to March 2016, amounted to approximately $1.2 billion and totaled funding at $1.36 billion. Beyond 2014, the company had achieved a valuation of $10–$20 billion, depending on the source. Reports in 2016 suggested funding at about $3 billion, and a target of a billion dollars in annual revenues. [Wikipedia]

Data on US smartphone owners using Snapchat, April 2013 vs April 2016:
source: Statista

Snapchat has mainly be known as a messaging app used by teenagers and college kids but older adults are now increasingly using the app. According to comScore.com, the percentage of 25- to 34-year-old smartphone users in the United States who use Snapchat has risen from 5 percent three years ago to 38 percent in April 2016.
Tweets by Snapchat

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Why Snapchat Is Worth Billions, Hottest Social Network Among US Teens

Statista.com

According to a recent regulatory filing, Snapchat (domain name: snapchat.com ) raised an additional $1.81 billion in funding from various investors. Since 2011, the company behind the popular chat app has raised more than $2.6 billion and is currently valued at around $20 billion.

An app that generated just $59 million in revenue last year, Snapchat is extremely popular among young Americans. Having recently inherited the teenage social media crown from Instagram (domain name: instagram.com), it caters to a new generation of users for whom Facebook and Twitter are old news. Snapchat’s highly engaged user base is growing rapidly. According to an investor pitch deck that surfaced last week, the number of people using Snapchat every day grew by around 50 percent in each quarter last year. By the end of 2015, Snapchat had 110 million daily active users who combined to an impressive 10 billion video views per day.

Is #Snapchat Really Worth $20 Billion? https://t.co/YXjJoH6b3k #smm pic.twitter.com/L3eRver523

— Social Media Today (@socialmedia2day) May 30, 2016

Statista.com

28 percent of the 6,500 teenagers polled this year named Snapchat as their most important social network, propelling the chat app past Instagram and Twitter, which both saw their popularity among America's youngsters decline over the past 12 months. Snapchat may have conquered the hearts of teenagers, but it has yet to win over advertisers. According to a recent report, the app trails its peers by a mile in terms of utilization in advertising campaigns.

Tweets by @Snapchat

See also on Domain Mondo: The Biggest Apps, More Than A Billion Users Monthly, Timeline Chart:


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