On Monday, Japanese hoverbike-manufacturer ALI Technologies filed for bankruptcy, citing the exorbitant research and development costs associated with bringing the futuristic technology to reality. The news comes less than a year after ALI, which planned to sell the flying vehicles at $500,000 a pop, flopped onto the Nasdaq in one of the worst SPAC public-market debuts of all time, in which roughly 90% of investors redeemed their shares almost immediately. In retrospect, "unproven Japanese hoverbike company" is almost a parody of the excesses of SPAC-mania.
ARTIFICIAL INTELLIGENCE
IMF Warns AI Is Coming for Jobs in High-Income Countries
No matter what language you speak, you might need to become fluent in ChatGPT, Bard, and Llama to feel more secure at work.
The International Monetary Fund warned almost half of all jobs worldwide could be affected by artificial intelligence. In some cases, that effect is beneficial, increasing productivity and wages. For the rest of us working stiffs, the advent of AI will likely not be so kind.
The Obsolete Man
Every few generations, the labor force faces another disruptive technology. In the early phases of the Industrial Revolution, those who quickly adapted to heavy machinery like steam engines and cotton gins were the ones who succeeded. Starting in the 1920s, if you could type, you were more likely to get an office job. In the age of the internet, coding is one of the most desirable skills for modern-day, white-collar workers. And now, AI is in the same position to benefit those who can use it — and replace those who can't.
The IMF declared that AI could impact 60% of jobs in high-income nations, 40% in emerging economies, and 26% in low-income countries. In many instances, that would mean a loss of jobs and worsening income inequality. In a blog post, IMF chief Kristalina Georgieva said policymakers around the world should be concerned about this "troubling trend" and create new regulations "to prevent the technology from further stoking social tensions."
Some professions will be greatly exposed to AI, but the technology will be complementary to work, not a replacement. The IMF said it doesn't see a future where AI displaces jobs like surgeons, lawyers, and judges — highly intricate roles that can't just be handed off to unsupervised tech, thanks to legal and ethical barriers.
The IMF considers jobs like telemarketing "high-exposure but low complementarity," meaning cold-callers offering goods and services will likely face legitimate job threats from AI. But more manual and expressive careers appear to be in the clear — a piece of software isn't about to start washing dishes or portraying Alexander Hamilton on Broadway.
Global Public Interest? The report could provide some food for thought as this year's World Economic Forum, which kicked off Monday in Davos, Switzerland. But confidence in the WEF has waned in recent years with many feeling it's out of touch with the event's original goals. To address global poverty and climate change, you invite a bunch of billionaires on a ski-networking trip and offer them private jets and $43 hot dogs? No wonder this year's theme is "Rebuilding Trust."
They say when one door closes, another opens. But for Boeing, when one door blows open, others start closing.
It's tough being known as a plane-maker whose planes may fall apart while several thousand feet in the air. But such is life suddenly for Boeing, and righting the airship may now be a yearslong process. As a crucial client in China grows increasingly skeptical, according to a Wall Street Journal report this weekend, the aerospace giant is kicking off a rehabilitation tour.
Turbulent Skies
Boeing may have to traverse a long runway before gaining back the faith of the general flying public. The company has started that process by amping up its inspection processes and sending a team to Spirit AeroSystems, the third-party supplier and contractor responsible for installing the optional mid-fuselage exit door on the 737 Max 9 aircraft models that terrifyingly blew off the Alaska Airlines flight two weeks ago. In a bid for transparency, the manufacturer is also inviting airline clients into its factories, as well as outside experts who may suggest tips and improvements, according to a letter sent to employees on Monday by commercial aircraft chief Stan Deal.
The safety checks may have to be impressive to win back the trust of Chinese clients, who represent an increasingly all-important aviation market:
The news comes just as China Southern Airlines announced it would take additional safety investigations into its own hands when (or now maybe if) planned Max deliveries are finally completed, according to a Wall Street Journal report.
Made in America: It's tough news for Boeing, which hasn't completed a direct 737 Max delivery into China since 2019, back when the nation was the first in the world to ground all 737 Max flights following a pair of fatal crashes. But China's commercial aviation industry is booming, and, according to Boeing's own forecasts, the market will represent about 20% of all global aircraft deliveries over the next 20 years. If Boeing wants in, they may have to start offering — excuse the pun — some doorbuster sales.
Written by Brian Boyle
BIG TECH
Apple Discounts iPhones in China to Fight Sales Slump
Apple, king of disruption, has come up with a revolutionary new sales technique: charge less for its phones.
The last few weeks have seen reports of the unthinkable for Apple: softening iPhone demand in China, the company's second-biggest market after the US and the biggest market globally for smartphone sales. Apple has reacted by offering a limited-time-only $70 discount ahead of the Lunar New Year, a rare move saved for truly dire times.
Go Your Own Huawei
Apple released its iPhone 15 models last September, and in China, the debut opened with more of a whimper. Over its first 17 days in the Chinese market, the iPhone 15 performed 4.5% worse than its ancestor the iPhone 14, according to Counterpoint Research. Things went from bad to worse, as Jeffries analysts found iPhone sales dropped 30% year-on-year in December.
Analysts' best guess at why Chinese consumers suddenly seem less enamored of the iPhone is that domestic smartphone-maker Huawei, a target of US sanctions over recent years, has stolen Apple's thunder:
Huawei brought out its new flagship phone the Mate 60 Pro in August, replete with a new kind of chip so powerful that the US started to question whether Huawei had somehow circumvented the US-China chip war.
According to Counterpoint Research, Huawei grew its China market share to 14% in last year's Q3 from 11% in Q2. Meanwhile, Apple's slice of the pie shrank to 15% from 16%.
Hands-on Headsets: While Apple tries to grease the wheels of iPhone commerce in China, getting your hands on its next product will be a surprisingly involved process. Apple's new VR headset, the Vision Pro, goes on sale in just a few weeks, and the company is reportedly gearing up for an in-store demo lasting up to 25 minutes. Retail employees also need to select the correct accouterments for Vision Pro buyers, measuring their faces to determine what size foam cushions, headbands, and "light seals" to fit them with. Oh, and if you wear glasses, they'll even scan them to learn your prescription. You know, regular shopping stuff.
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Extra Upside
The biggest game: Peacock's broadcast of Chiefs vs Dolphins was the most-streamed live event in US history.
Playtime's over: Leaving China is tough for toy makers.
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Global Public Interest? The report could provide some food for thought as this year's World Economic Forum, which kicked off Monday in Davos, Switzerland. But confidence in the WEF has waned in recent years with many feeling it's out of touch with the event's original goals. To address global poverty and climate change, you invite a bunch of billionaires on a ski-networking trip and offer them private jets and $43 hot dogs? No wonder this year's theme is "Rebuilding Trust."
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