6A : Identifying Opportunities in Economic and Regulatory Trends

Economic trend 1: Apple unveils new iPhone models amid slowing smartphone demand
a. https://www.foxbusiness.com/technology/apple-unveils-new-iphone-models-amid-slowing-smartphone-demand
b. I suggest an opportunity may exist with Apple’s new iPhone reveal. With the price of the smartphone drastically increasing every 6 months with the new reveal, people are slowing down their purchases. The company has even reported that they are going to manufacture 20 million less phones than the last shipment based on their company’s projection. This provides an opportunity for other companies to come in with similar technology at a much lower price to better appeal to more customers.
c. This new opportunity would appeal to most people who are tech-savvy and get a new phone every 6 months to a year, but don’t want to pay the high price that Apple is offering.
d. This may be a very difficult opportunity to exploit because Apple drives the entire tech industry. A new company or existing outdated company would have to make a huge update to get on the market next to Apple.
e. For the past few months, I have been looking forward to buying the next Apple iPhone. But with the much higher price with the lack of useful features, I will most likely look into other options.

Economic trend 2: SpaceX changes plans to send tourists around the moon

a. https://www.foxbusiness.com/markets/spacex-changes-plans-to-send-tourists-around-the-moon
b. The original plan from Elon Musk was to send 2 passengers flying around the moon in the new Falcon Heavy rocket. But this recently has changed to only letting 1 person fly in the rocket. This is a step towards one day allowing everyone to achieve their dream of going to space. This opens up an opportunity for people to explore the unknown of space and makes it much easier to become an astronaut. Right now SpaceX has no competition, so that provides a huge opportunity for other companies to open and start their own missions to space.
c. The typical customer would be average, normal people who have always wanted to explore space and the moon. This also holds an opportunity for more space exploration businesses to open.
d. This would also be very difficult to exploit because of the huge money investment and risk.
e. I have always been interested in space and it’s a dream (although unrealistic) to explore it one day.

Regulatory change 1: Germany planning crackdown online tax evasions

a. https://www.cnbc.com/2018/07/25/reuters-america-germany-planning-crackdown-on-online-tax-evasion--paper.html
b. The German finance minister is planning to reduce the taxes of online dealers in a variety of platforms like eBay and Amazon. This new law holds that these platforms are registered with the proper tax authorities. The article states that there are several hundred million euros in additional tax revenue each year. This leads to the opportunity of more products being sold at a cheaper price and increasing sales and products for sale on both platforms.
c. Typical customers of online platforms like eBay and Amazon are going to be attracted to this opportunity as well as sellers who post products on these platforms.
d. This would be very easy to exploit since the government regulates all of the money and taxes and less of individual business transactions.
e. I am an avid shopping online on all platforms which draws me into these cheeper deals online.

Regulatory change 2: California prohibits city soda taxes through 2030

a. https://www.reuters.com/article/us-usa-california-sodatax/california-prohibits-city-soda-taxes-through-2030-idUSKBN1JO2A3
b. California passed a law that bans local sugar taxes until 2030. This prevents any local governments from imposing any taxes in the future on groceries including all carbonated drinks. This opportunity for more sugar-infused drinks to come to market is very high since customers are more willing to buy.
c. People who drink soda or enjoy carbonated drinks are drawn towards this opportunity.
d. This would be very easy to exploit as more beverage companies can sell their product while the topic is in the light in California.
e. I never liked carbonated drinks and only drink water. But since I visit California regularly, their prices on all aspects are very high so it is great to see the government take steps to reduce the taxes.