or: David waits for Goliath!
In the mid-1980s, I did my first training in information technology. At that time it was still called data processing. A high-resolution 19-inch monitor was as heavy as two crates of beer and the PC cases looked like the minibar refrigerators in the hotel room. BIG BLUE (IBM: WKN 851399) had a market share of between 70% and 95%. The introduction of a company software for a handful of users cost a 6-figure sum, but the hardware technicians then also wore dark blue pinstripe suits and ties for the toner change.
FANG shares make Proprietary product policy
By way of comparison: Microsoft(WKN 870747) Dynamics 365 Business Central in the cloud is available today for 59 euros a month, and the matching PC and printer for a few hundred euros. IBM was the undisputed giant in the computer industry, the "leader of the universe". There was Hewlett-Packard(WKN A140KD) and Apple(WKN 865985), but they were really no threat. Yes, I know what you are thinking ... Apple was not a threat? No it wasn't - yet! IBM's business model was to sell world class computer technology and that IBM would ever have to give up its supremacy in this field was unthinkable. Only about 3 years and IBM slipped into serious trouble caused by arrogance, ignorance and customer anger. Local networks, PC software, decentralised data storage, the IBM systems did not keep up with the rapid technological development, the customers were annoyed by the arrogant price and licensing policy. The proprietary product policy further annoyed customers. In the early 1990s, IBM's share price plummeted by almost 66%. DEC, another market leader from the 1980s, was liquidated at the end of the 1990s - they had also failed to recognise the signs of the times.
Market changes arise
There are many indications that some of the so-called FANG companies (Facebook, Apple, Netflix, Google/Alphabet) are also ignoring their visual aids today. On 25 July, Facebook's(WKN A1JWVX) share price imploded from $216 to $167 in one day, almost 25% stock market value or $120 billion gone in one day. Twitter(WKN A1W6XZ) also followed suit with a veritable share price loss. Alphabet ( WKN A14Y6F, formerly Google) and Apple are still holding their own, but the tech sector is still battered. The share prices were and still are excessively overexcited. But that is not the only reason. This share price slide anticipates something. Like IBM in the 90s, Facebook and co. are now dominated by arrogance, ignorance of market changes and widespread customer annoyance.
Customers like preschoolers
The business model of social media works (at least so far) as follows: You leave your customer data and are allowed to write and publish what you want. This is what has made Facebook a giant. Write and publish what you want, preferably anonymously! Great - Or? You can express your opinion, even politically or just post the pictures of the last barbecue party. But Facebook, YouTube (Google) and Twitter have left the path of liberal virtue, they annoy their customers in a political correctness written on the flags. Writing what you want was yesterday, today so-called hate speech (alleged hate speech) is deleted. What hate speech is exactly no one knows. In the end, everything is deleted, censored, muted (keyword: shadow-banning), banned, thrown out, blocked that doesn't suit the political correctness mainstream. Two weeks ago, in a consternated move, Facebook, Apple, Twitter and YouTube cold-called Alex Jones by blocking all social media accounts. A channel with over 2 million subscribers. This is what the East German Stasi called "Zersetzung". The big social media companies want to educate their customers in their elitist arrogance and treat them like preschool children.
It shows the beginning of the end of these giants. On the Internet, the competition is just a mouse click away. Facebook user numbers are in sharp decline. Many users are already cavorting on BitChute, DTube, VK, Steemit, DuckDuckGo and others are waiting in the wings. Facebook and Co. ignore that - YET -! The Flash crash, arrogance, censorship are more connected than tech giants would like to admit. Alex Jones will recover from the blocking and focus on new platforms. Presumably, it will be decentralized systems that cannot be censored and work with cryptographic methods. In its legendary 1984 advertising video, Apple saw itself as aliberator from the censorship and ideological paternalism of the computer giants of the time. A female "David" throws a hammer at Big Brother (in reference to George Orwell). Too bad Apple has left its origins and hope for the next David.
