As IF Times

Source: Apple suffers embarrassing demo Face ID fail at iPhone X launch 

Without question, over the past decade, the smart phone has been the most influential product in the world eclipsing the personal computer, disposable diapers and likely the wheel for the number one spot.  An article was written years ago making light of the influence of phones, but in modern communities everywhere, smart phones and Iphones in particular, have achieved a must have status in society on the plane of Starbucks and bottled water.  Phones have attained the status of social jewelry.  Girls don’t compare rings, they compare phone versions.

From starting off as a mere convenience, smart phones have become an absolute necessity for most people.  We’ve all heard anecdotal stories of people suffering genuine panic at the thought of losing their phones and not only because they’re worth the cost of a few car payments.  These days, who doesn’t have their entire life story embedded in their phones, from pictures and videos to chat sites links, contact lists and passwords to various consumer sites?

People have undeniably become addicted to phone usage and this addiction has given rise to the popularity of social media companies that otherwise have no value.  Facebook, Twitter, Snapchat, Instagram etc etc, all social equivalents of crack cocaine for the insatiable appetites of the Look At Me crowd.  You would think that having access to what everyone else is doing or thinking would be a boon to society.  I can argue that it is not.  Rather than expanding thought and knowledge, instead people have become more tribal as they divide themselves into camps of thought that align with their particular worldview and this is reinforced by others similarly opined, resulting in an echo chamber vortex.

As we’ve touched on before, anyone can create a sympathetic following for an issue, no matter how inane, just by virtue of being fleetingly famous.  Regardless of how inarticulate or erroneous a position may be, it can still draw in like-minded supporters as if they were Charles Manson devotees.  For a more comprehensive view of this phenomenon, read the classic work by Charles Mackay, “Extraordinary Popular Delusions and The Madness Of Crowds.  Make no mistake, this is all crowd behavior.

Apple Phones have been the conduit of choice (mostly) for this tribal narcissism and on almost a yearly basis, the faithful line up for hours in fervid anticipation of the release of the newest iteration of the holy tool.  Recently, for the first time ever, the newest release, labeled X, has failed to generate the must have hysteria that accompanied every other iteration.

Maybe the product fails to offer new gee whiz features.  Maybe people don’t need to have a new device with only marginally newer features.  Maybe people don’t feel the need to spend four digits on an appliance.  Or maybe people have just decided…it’s only a phone.

Source: Uber lost more than $2.8 billion last year despite growth | Daily Mail Online

Whether we like it or not, we have become increasingly used to the irrational antics and bleats of large segments of western society.  What’s particularly alarming is the vapidity of the opinions and sentiments often displayed by the generation of people going through the college process; those that will one day determine the shape of the nation.  Rather than representing any insights into genuine social issues, entire armies of students are expressing naive and illogical views propagated by their academic mentors, who are typically estranged from reality as well.

This gossamer skinned worldview typically bursts once they collide with the realities of living in the actual, non academic virtual world.  When the harsh reality of a theoretical education bumps against the need for practical skills, the resulting shock of having no marketable knowledge becomes horrifying.

The business world has historically been the ultimate reality check for those who had been weaned on fairy dust, since success or failure in business is mercilessly matter of fact, exempt from the wishful thinking of academic theory.  At least that’s how it used to be.

This notion is being put to the test however as quite a number of large scale enterprises have managed to defy the very basic premise of a successful business; that is, that it makes money.  While there have been some notable enterprises that have succeeded on the basis of projected revenues in the face of sizeable startup losses, notably Amazon, apparently the emphasis on projected revenues is dominating in top finance circles as justification for valuations.  Imminent profitability has moved way down the checklist in the valuation exercise.

The accepted wisdom in finance circles appears to be, “if you build it, they will come”. The most marketable metric these days is ‘eyeballs’, or the supposed number of lurkers and app users that will translate into hard dollars once the venture hits its stride.  It’s actually amusing how many of America’s top valued public companies today rely on exactly that model.  Facebook, Snapchat, Netflix, Google, Yahoo and no doubt many other yet to be famous  internet wunder companies waiting in the wings.

Tesla, while not strictly speaking an eyeball driven company, it has nonetheless managed to achieve a valuation larger than venerable auto makers Ford and GM on the premise that their electric car solutions will be the dominant paradigm.  Maybe.  But they still have to make money while making cars, regardless of the idealism of ‘free energy’.  So far, not.

Uber, the ride share company is recognized worldwide for revolutionizing the taxi business;  so much so, that Uber has become a verb in modern day language. While seen as a boon to intoxicated people everywhere, it has only cost them a mere $2.8 billion dollars in losses to be an iconic part of modern culture.  It’s the opposite of the Starbucks model, wherein they overcharge consumers for a commodity product…which is brilliant.

If Uber can stay in business long enough to eventually become solvent, then we really look forward to the day when the airline business goes Uber.  Can’t wait to fly to Hawaii for 12 bucks.