MINGJA Economy Lab.

경제적자유를 이루기 위한 노력_ Effort to achieve economic freedom

INTRO

We will explore the future report of the big tech companies known as GAFA (Google, Amazon, Facebook, Apple). Through this report, we can understand the future preparation strategies of each company. It is possible to determine in which industries they plan to invest based on these strategies. It also revealed promising industries and how one should prepare for the future on a personal level.

Recently, there’s a term called the ‘Magnificent Seven.’ This refers to the combination of the aforementioned four companies plus Tesla, Nvidia, and Microsoft.

I have researched through a book titled ‘Big Tech Future Report 2025’ and various other materials. The author of this book is Yasumasa Yamamoto, who obtained his master’s degree from the University of Tokyo and worked at a financial institution in New York. He earned his Master of Science degree from Harvard University and then joined Google. He promoted the digital utilization of Japanese companies related to fintech and AI. He also advises on Silicon Valley venture capital while being a venture investor himself.

Let’s take a look at how big tech companies are preparing for the future.

INSIGHT

GOOGLE’S FUTURE REPORT

The first company in the future report is Google. When I was in the U.S. a decade ago, Google was just a search engine. In the U.S., the verb ‘Google’ even replaced the term ‘search’. However, Google has evolved from being just a search engine to a company capable of doing almost anything. They expanded their business through mergers and acquisitions. A notable example is their acquisition of YouTube in 2006. They also acquired Android, giving them an operating system to compete with Apple. They have bought AI-related companies and are also venturing into the autonomous vehicle sector.

Let’s delve into the strategies mentioned in Google’s future report.

Waymo: This is Google’s autonomous vehicle project. Using GPS technology, it compares the current location with the destination and steers in the desired direction. It also creates 3D maps using a LiDAR equipment composed of 64 beam lasers. In 2012, they successfully conducted an autonomous drive with a visually impaired passenger. By 2014, they had test-driven approximately 700,000 miles.

Google Brain and DeepMind: They are leaders in the field of artificial intelligence and deep learning. Through projects like AlphaGo, they achieved human-level performance. You might recall the Go match against Lee Sedol 9-dan.

Google Health: This is the division responsible for research and product development in the healthcare sector.

Augmented Reality (AR) and Virtual Reality (VR): Through products and technologies like Google Glass, ARCore, and Daydream, they are continuously expanding their activities in the AR and VR sectors.

Google Cloud: They compete with other major cloud service providers by offering cloud-based services and solutions.

AMAZON’S FUTURE REPORT

Amazon, once an online shopping mall, has infinitely expanded its business. A prime example is the AI speaker, Alexa. Amazon is venturing into the insurance industry using the data they’ve collected over the years. They plan to handle health insurance and property and casualty insurance. Especially, Amazon is accelerating in all areas through its ‘customer-first’ approach. In the future, we can expect items such as drone deliveries and autonomous delivery vehicles.

Cloud Computing: AWS (Amazon Web Services) is one of Amazon’s major revenue sources. Amazon continues to expand its cloud services, offering new features and services, and is expanding data centers worldwide.

Logistics and Delivery: Amazon is expanding its logistics network, enabling faster deliveries, including same-day delivery services.

Biometric Technology: Amazon is investing in biometric technology for use in cashier-less stores like “Amazon Go”.

Healthcare: Amazon is showing several moves to enter the healthcare market. Activities include the acquisition of PillPack and the launch of a virtual medical service called Amazon Care.

Entertainment & Content: Amazon is investing in the production of original series and films through Amazon Prime Video.

Smart Home: Amazon is expanding its footprint with smart home devices like Amazon Echo and Alexa.

META’S FUTURE REPORT

Although it had a momentary downturn, Facebook, now renamed Meta, acquired Instagram. Due to the volatile nature of the SNS industry, they acquired Instagram and more recently, WhatsApp. Globally, 2.6 billion people use Facebook. They are expanding their business in various directions, such as the introduction of Secret Crush and the issuance of the Libra cryptocurrency.

Metaverse: The metaverse refers to a digital environment centered on interactions in virtual spaces. Facebook aims to be a leader in this area, striving to realize the metaverse by combining virtual reality (VR), augmented reality (AR), and various digital experiences.

Virtual Reality and Augmented Reality: Through products and platforms like Oculus and Spark AR, Facebook aims to be at the forefront of VR and AR technologies.

Remote Work and Virtual Collaboration: With the increase in remote work due to the COVID-19 pandemic, Facebook aimed to enhance the remote work environment through virtual collaboration tools like “Horizon Workrooms”.

Artificial Intelligence and Machine Learning: Facebook continues to expand its investment in AI and ML technologies to enhance user experience.

Privacy and Security: Facebook has announced and implemented several measures to address concerns about user privacy and data security.

APPLE’S FUTURE REPORT

Apple is striving to captivate all human senses. Personally, I use the iPhone, iPad, Apple Watch, MacBook, AirPods, and AirPods Max. (Quite a list!) Not only Apple Pay and Apple Card but even Apple Glass is in the development pipeline. Apple Pay and Apple Card offer lower fees. Through this, Apple’s strategy is not merely to provide financial benefits, but to cultivate loyal customers in the long run.

Integrated Hardware-Software Ecosystem: Apple consistently pursues a strategy of closely integrating hardware and software to optimize user experience.

Privacy: Apple has recently adopted a distinctive strategy emphasizing user privacy, as evidenced by recent iOS updates limiting ad tracking.

Augmented Reality (AR) & Virtual Reality (VR): Through tools like ARKit, Apple encourages developers to create AR applications. Rumors also suggest potential launches of AR/VR hardware products in the future.

User Health & Wellness: Through the health monitoring features of the Apple Watch, and services/products like Fitness+, Apple is expanding its footprint in the health and wellness sectors.

Apple Silicon: Apple has started transitioning to its custom-designed chipset, Apple Silicon (like the M1 and its successors). The goal is to offer better performance and efficiency across Apple’s product lineup.

Service Expansion: Through a variety of services like the App Store, Apple Music, Apple TV+, Apple Arcade, and iCloud, Apple aims to expand long-term revenue streams and encourage user activity within the Apple ecosystem.

MICROSOFT’S FUTURE REPORT

Microsoft was once the crown prince of the Windows era. With various competitors emerging, they are shifting their focus to cloud systems and expanding their business. They also offer MS Office, which was once pricey, as a subscription service at a reasonable price. Through this, they collect data more effortlessly and generate profits.

Cloud Computing: Azure is one of Microsoft’s primary growth engines. The company is offering services targeting enterprise customers through the expansion of cloud services and developing cloud-based solutions in areas like AI, machine learning, and data analysis.

Collaborative Tools: With the rising importance of tools like Teams, Microsoft is investing in the development and enhancement of tools supporting remote work and digital transformation. Gaming: Centered on Xbox and Game Pass, Microsoft seeks to expand its gaming ecosystem. The Game Pass subscription model serves as a key strategic tool in this sector.

Mixed Reality & AI: Microsoft continues to drive the commercialization of technologies by developing Mixed Reality devices like HoloLens and AI services and solutions. Collaboration with Open Source: Recent Microsoft initiatives strengthen their relationship with the developer community through collaborations with Linux, the acquisition of GitHub, and various open-source projects.

Windows: Windows remains one of Microsoft’s key products. Efforts are ongoing to improve post-Windows 10 updates and strategies to ensure Windows operates across diverse devices and environments.

Security: Microsoft is bolstering security solutions and services in the enterprise market and continuously strives to enhance organizations’ digital security.

TESLA’S FUTURE REPORT

Tesla is one of the most innovatively advancing companies. It is commonly known as an electric vehicle manufacturer. However, this is merely a means to an end with the ultimate goals of addressing environmental issues like energy consumption, air pollution, and global warming. In the future, they could revolutionize transportation through robocabs and Hyperloop. Also, they have plans for the Powerwall business.

This business commenced in Japan from 2020, offering solar panel installation and charging services on a subscription basis. The initial costs are free, with a monthly fee of about $45. Users can charge electricity worth an average of $55 monthly, which means users benefit by saving approximately $10 each month. Naturally, this business was initiated with the idea of charging Tesla vehicles with the generated electricity to address energy concerns.

Electric Car Production Expansion: Tesla plans to ramp up production and delivery of new models like Model Y, Cybertruck, Roadster, and Semi.

Energy & Battery Technology: Beyond car manufacturing, Tesla is expanding its energy sector, focusing on products like Powerwall, Powerpack, and Megapack. They continue to invest in improving battery technology and reducing costs.

Global Expansion: Tesla is expanding its production capacity by establishing new factories in Shanghai (China), Berlin (Germany), and Texas (USA).

Autonomous Driving Technology: Tesla heavily invests in research and development for autonomous driving technology, aiming for the commercialization of Full Self Driving (FSD) capabilities.

Service Network Expansion: Tesla strengthens its customer service worldwide through the expansion of service centers, Supercharger networks, and sales outlets.

Integration with Renewable Energy: Tesla is expanding its strategy to provide integrated energy solutions for residential and commercial buildings by combining solar panels and energy storage solutions.

Manufacturing Efficiency: Tesla is continuously striving to enhance the efficiency and automation of its manufacturing processes.

OUTRO

Through the Big Tech Future Report, we examined the strategies and future prospects of major big tech companies. A characteristic of big tech companies is that they start with software and encompass hardware. They don’t just engage in one business. They dive into various businesses, influencing all aspects of human life.

Search engines, mobile phones, computers, cars, IoT, and other fields will be infiltrated by big tech companies. It’s somewhat alarming, but it seems necessary to adopt an attitude of preparing for the future.

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