It does seem like Temu, the Chinese AI-anchored ecommerce company in America, is not massively picking customers from Amazon. Rather, what is happening is that it is bringing new customers into the sector. This seems like non-destructive or non-distortive growth against Amazon yet.
Think of the village free range chicken you grew as a kid; as it grew it gave you no troubles, unlike the dog (distortive growth) which as it grew, it needed attention to be fed! So, Temu can grow, and Amazon will grow. Yet, Amazon should be careful as there is likely going to be a convergence soon where Temu could begin to take some Amazon customers. (Read the Non-Disruptive Growth: The Free-Range Chicken Analogy)
China is finding ways to give US companies tough times in the business courts. Ask Apple about that as LinkedIn News reports: “Apple has taken another hit in China, as homegrown rival Huawei reports a nearly $2 billion profit for the last quarter, up more than 65% from a year earlier, per Bloomberg. Huawei’s new Mate 60 smartphone line, released in August, drove much of that growth, boosting the company’s consumer electronics division by more than 17% in 2023.
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“At the same time, Chinese shipments of Apple’s iPhone have dropped precipitously — about 33% in February from a year earlier. Behind the drop: a Chinese government push to use homegrown devices, plus stiff U.S. sanctions.”
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