[HN Gopher] Philips and the death of Europe's last electronics g...
       ___________________________________________________________________
        
       Philips and the death of Europe's last electronics giant [video]
        
       Author : redbell
       Score  : 179 points
       Date   : 2023-03-11 09:28 UTC (2 days ago)
        
 (HTM) web link (www.youtube.com)
 (TXT) w3m dump (www.youtube.com)
        
       | permo-w wrote:
       | what about Nokia?
        
         | hef19898 wrote:
         | Still exists, well and kicking. They just don't make phones
         | anymore themselves. And their mobile network business used to
         | be part of a joint venture with Siemens.
        
       | arp242 wrote:
       | I grew up in Eindhoven, the birthplace of Philips. It was
       | everywhere in the city back then. My entire family worked for
       | Philips: dad, grandfather, uncles.
       | 
       | I don't really think it's a bad thing what happened to it. Many
       | viable components have been spun off and sold in various ways;
       | the business is essentially fine, just not under the Philips name
       | and management. Does that really matter? I don't think it does.
       | And giant companies are not a good thing: the bureaucracy in
       | Philips was legendary and giant companies don't tend to be good
       | for consumers.
       | 
       | It is hard to underestimate how much influence Philips has had on
       | the history of Eindhoven; it turned a small medieval town to the
       | city it is today (technically its had city rights since
       | 12-something, but it was really just a small town until 1920).
       | It's also easy to be romantic and look back with rose-tinted
       | glasses, or to transpose activities from the past to today.
        
       | wallaBBB wrote:
       | I found this video quite flawed.
       | 
       | What happened to Phillips is something that proved beneficial in
       | the long run.
       | 
       | Legacy of Philips is now ASML, NxP, pretty good startup scene in
       | Eindhoven, and a few other companies. The only victim here is the
       | name. If Philips tried to move as one company they would have
       | probably dragged down their chip related businesses by siphoning
       | money into the fields they were losing.
       | 
       | Of course one could argue that the company under Philips name
       | should have chose different direction and spun off consumer or
       | medical market, but at the end of the day it's just a name.
       | 
       | I believe in hindsight this will be a way better outcome for
       | everyone than the one we'll see from big tech if they're not
       | broken up. There are already too many examples of them killing
       | competition by leveraging their monopolies or buying it up and
       | killing it off.
        
         | COGlory wrote:
         | Phillips also helped spawn FEI, which was then bought by Thermo
         | Scientific and have a near monopoly on Transmission Electron
         | Microscopes, as well as being competitive in other EM fields.
         | Without Phillips Electron Optics, most cutting edge structural
         | biology couldn't be done.
        
         | eecc wrote:
         | Well, no it's not flawed. For one, he did mention that ASML and
         | NXP flourished when freed from the bad management of Philips.
        
           | detourdog wrote:
           | Maybe it's flawed because Siemans still exists.
           | 
           | https://en.wikipedia.org/wiki/Siemens
        
             | quonn wrote:
             | Siemens has recently split into different companies so it's
             | questionable if it still exists.
        
               | ranguna wrote:
               | It did?
               | 
               | They merged with Gamesa in 2016 (more like Gamesa merged
               | into Siemens).
        
               | quonn wrote:
               | Maybe they stopped after splitting of Energy:
               | 
               | https://www.reuters.com/business/siemens-supervisory-
               | board-e...
               | 
               | My understanding was that they will completely split into
               | many small parts, but it seems that they came to their
               | senses.
        
               | [deleted]
        
               | stefan_ wrote:
               | Siemens is essentially a hedge fund, they invest one
               | place, divest another. You might not find the label on
               | your fridge but its still a $80B revenue business.
        
           | wallaBBB wrote:
           | But it also makes a point that it was a mistake to do so.
        
             | somedude895 wrote:
             | Quite likely for them it was a mistake, letting promising
             | companies go lest you smother them with your inertia. Like
             | parents letting their children leave to live to their full
             | potential. Not that businesses do or should have that as a
             | goal per se, but it seems to have been for the greater
             | good.
        
       | lashkhi wrote:
       | [dead]
        
       | pvaldes wrote:
       | Another mark for the VAT kills list
        
         | eecc wrote:
         | or the sweet tax havens that make it easier for management to
         | pull profits out of thin air?
        
         | mrbadger wrote:
         | In fact, VAT is what facilitates the operation of the EU single
         | market. Meanwhile, in the US:
         | 
         | https://fsi.stanford.edu/events/why-europe%E2%80%99s-single-...
        
           | nivenkos wrote:
           | The street-level sales tax in the US is a nightmare.
           | 
           | But the EU's 25% VAT is absurdly high, 5% would be more
           | reasonable.
        
             | lotsofpulp wrote:
             | State level percentage sales tax is simple enough, but the
             | US has gone overboard with every jurisdiction implementing
             | its own form of sales tax, and implemented using asinine
             | calculations.
             | 
             | Sometimes percentage, sometimes flat, sometimes
             | combination, sometimes based on the volume, sometimes based
             | on the mass of an ingredient, sometimes based on time of
             | year, and on and on it goes.
             | 
             | And it could be from federal, state, county, city, transit
             | region, federal agency. I look at my mobile phone bill or
             | hotel receipt and there are 4 to 10 (literally 10) itemized
             | taxes, and I have no idea if I am being scammed or not.
             | 
             | And the items applicable to sales tax and exempt from sales
             | tax is constantly changing. And the entities exempt from
             | sales tax and the documentation requirements, placed on
             | merchants, is always changing.
             | 
             | This is just the website for US federal diplomat sales tax
             | exemption instructions.
             | 
             | https://www.state.gov/sales-tax-exemption/
             | 
             | This type of complexity exists for federal employees, for
             | 50 different state employees, and on more local levels.
             | 
             | I can only assume there is massive amounts of under and
             | overpaid sales tax, with all these avenues for corruption
             | and mistakes. And how much of the country's productivity is
             | wasted on calculating and auditing all of this?
             | 
             | Edit: this turned into a long rant, but just look at what a
             | simple merchant is expected to know or implement in its
             | systems to sell trivial consumables:
             | 
             | > In addition to the specific text, each tax exemption card
             | bears one of four animal symbols indicating the specific
             | type of tax exemption of the cardholder:
             | 
             | * Owl: mission tax exemption cards with unrestricted tax
             | exemption.
             | 
             | * Buffalo: mission tax exemption cards with some degree of
             | restriction.
             | 
             | * Eagle: personal tax exemption cards with unrestricted tax
             | exemption.
             | 
             | * Deer: personal tax exemption cards with some degree of
             | restriction.
        
         | hef19898 wrote:
         | VAT as in Value Added Tax? How so?
        
         | bluepizza wrote:
         | China also uses VAT..
        
       | zeristor wrote:
       | Strange, my Dad worked for Philips for 30 years, well Mullards,
       | which was a subsidiary. Reminded me of the newsletters, the
       | employee discounts, the calendar type thing to celebrate 100
       | years.
        
       | stevenjgarner wrote:
       | > "Complete failure in semiconductor industry"
       | 
       | Isn't this disingenuous? Phillips owns a 24% stake, or 99 million
       | shares, in ASML. Philips is granting the underwriters an option
       | for up to nine million shares. Philips also still holds about 1.3
       | billion TSMC shares, representing approximately 5.0 percent of
       | TSMC's issued stock.
       | 
       | ASML is a monopoly that is literally the only supplier for most
       | cutting edge equipment used by semi-conductor fabs globally
       | (TSML, Intel, etc). They make it all possible. In this regard,
       | Phillips has become more of a holding company than an electronics
       | operation itself.
        
         | sct202 wrote:
         | They sold off the last of their stake in ASML in 2004. They
         | also sold off the remainder of their stake in TSMC in 2007. If
         | they had kept both stakes, they'd be worth like $140b instead
         | of $15b.
        
       | pavlov wrote:
       | ASML, a Philips spin-off, is worth about $250 billion today. They
       | make the machines used to manufacture high-end semiconductors
       | everywhere.
       | 
       | In that sense Philips's legacy still underpins every smartphone
       | and computer today.
        
       | DoingIsLearning wrote:
       | Not mentioned in the video is that Philips Ventures is
       | effectively buying up MedTech companies with proven tech, and
       | hovering up the IP into their portfolio as an 'innovation'
       | strategy.
       | 
       | Effectively it's a zero risk venture for big corp companies that
       | depend on innovation, they don't have to sink money in research
       | projects in their own R&D labs. Just find someone with something
       | interesting which has already been de-risked, with proven
       | feasibility, buy them out and develop for manufacturing.
       | 
       | For clarity all big MedTech companies are doing this not just
       | Philips.
        
         | tetrep wrote:
         | > Not mentioned in the video is that Philips Ventures is
         | effectively buying up MedTech companies with proven tech, and
         | hovering up the IP into their portfolio as an 'innovation'
         | strategy.
         | 
         | Why is that bad? Unless there's something underhanded about the
         | sale, it sounds like it's exactly what a lot of startup
         | founders want: make an MVP, get noticed, get bought, take your
         | pile of money and make another business or go sit on a beach or
         | whatever you want to do.
        
         | esel2k wrote:
         | I agree all big MedTechs do this and I wonder what other
         | (better way exist)? Typically these giants have more cash and
         | heavy process instead of small nimble engineers who can freely
         | use their potential.
         | 
         | PS: I work directly with two ex-venture Philipps people, thats
         | why I ask.
        
           | DoingIsLearning wrote:
           | I mean there probably isn't much of a way out. It all comes
           | down to funding.
           | 
           | It is very rare for MedTech startups to have funding to
           | actually establish themselves in mature market, most of them
           | will have funding to get pass regulator hurdles or just
           | create an IP moat around the business, then the VC's
           | expectation is that another giant will buy them out who will
           | then have the purse to take products to market at scale.
           | 
           | My worry is that more and more the bigger companies are
           | buying or owning parts of startups sooner and sooner in the
           | technology readiness pipeline. That will probably limit how
           | much we actually innovate, both from the startup side that
           | now has oversight and from the internal R&D ranks at big
           | corp, that become glorified PMs and strategists rather than
           | researchers.
           | 
           | The only way forward is for VC's to stay for longer horizons,
           | but specially in MedTech if you are selling something that
           | involves a widget or hardware it will probably never scale in
           | a way that would make it an interesting business for VC's.
           | Perhaps the exception now is MedTech with SaaS type business
           | models or cloud based services.
        
             | lotsofpulp wrote:
             | > Perhaps the exception now is MedTech with SaaS type
             | business models or cloud based services.
             | 
             | This should pan out because the body has to (at least with
             | current technology) do a variety of things periodically
             | with high frequency to survive.
        
       | wkat4242 wrote:
       | IMO where Philips went wrong is selling off their name for
       | everything they weren't interested in to cheap brands, totally
       | undermining their name. TVs (Philips CRT tubes) were legendary in
       | the 80s, now they're made by a budget OEM from Hong Kong. Pretty
       | much all home electronics in the end. Very bad strategy, with
       | minor short-term rewards and killing the brand long-term.
        
         | trabant00 wrote:
         | I think they started selling off their name after and because
         | they where in trouble, not the other way around.
        
         | MomoXenosaga wrote:
         | Philips knew that they couldn't compete with LG or Samsung.
         | Nobody else could. Getting out of electronics was the right
         | decision.
        
         | polyamid23 wrote:
         | Yes! I stopped buying Philips products and have actively
         | advised people to avoid the brand after owning 2 different
         | products with questionable quality. At this point I wouldn't
         | buy any of their products, so it's hard for them to convince me
         | again, even if they improve. Sad.
        
         | sogen wrote:
         | Had a philips cassette player. stopped working exactly 1 day
         | after the guarantee expired.
        
         | eecc wrote:
         | Weren't Sony Trinitron sets the most iconic and best quality
         | CRTs?
        
           | wkat4242 wrote:
           | Trinitron had the annoying wires, very noticeable when the
           | monitor was moving a bit.
           | 
           | But there was probably also a chauvinist aspect to it because
           | I'm from the Netherlands.
           | 
           | Many other brands used Philips CRT tubes though.
        
           | actionfromafar wrote:
           | Yes, but rare in Europe. Philips TVs were great, but maybe
           | not as crisp picture. On the other hand, NTSC looks bad on
           | any tube.
        
           | yourusername wrote:
           | Yes but in Europe Philips Matchline were seen as comparable.
        
         | flakeoil wrote:
         | > IMO where Philips went wrong is selling off their name for
         | everything they weren't interested in to cheap brands, totally
         | undermining their name.
         | 
         | I'm curious, to which companies/products has Philips sold their
         | name to?
        
           | ChuckNorris89 wrote:
           | Mostly chinese OEMs. Japanese brands are doing it too. If you
           | buy a Toshiba LCD TV, it's not actually a Toshiba.
        
             | yread wrote:
             | Sharp TVs are also made by hisense
        
         | cf100clunk wrote:
         | The name game with Philips goes back many decades because there
         | was once a vacuum tube manufacturer in the U.S.A. named
         | ''Phillips'' (two ls), so they were forced to adopt new trade
         | names for the lucrative North American market: the Norelco name
         | for consumer appliances and the Maganavox name for consumer
         | electronics. Their reputation for quality was excellent back
         | then. Oddly, Canada's Bell Telephone subsidiary Northern
         | Electric did not push Philips away from using the Norelco name.
         | Nowadays those names have almost no connection to their
         | original organization.
        
           | wkat4242 wrote:
           | Weird, the Dutch brand is a given name, I thought these were
           | always allowed especially because the spelling is different.
           | 
           | But I've never heard of Norelco. Magnavox yes, it was a bit
           | of a B-brand in Europe, similar to Aristona.
        
       | hilbert42 wrote:
       | It's not only Philips that has bitten the dust, there's been a
       | succession of other large Western electronic companies that have
       | either gone out of business or that are now only a shadow of
       | their former selves. Here's a partial list:
       | 
       | Pye Industries, UK
       | 
       | EMI (Electric & Musical Industries), UK
       | 
       | Marconi, UK
       | 
       | AWA (Amalgamated Wireless Australiasia), Australia
       | 
       | Telefunken, Germany
       | 
       | Thompson CSF, France
       | 
       | HP Hewlett Packard, USA
       | 
       | Kodak, USA
       | 
       | Polaroid, USA
       | 
       | Varian Associates, USA
       | 
       | Ampex, USA
       | 
       | General Radio, USA
       | 
       | Philco, USA
       | 
       | Admiral, USA
       | 
       | RCA (Radio Corporation of America), USA
       | 
       | Philips, NL - as mentioned
       | 
       | I used to work for RCA and back then it was the largest
       | electronics company in the world and Philips was second. When RCA
       | failed, Philips became the biggest but unfortunately its time at
       | the top was short-lived.
       | 
       | There's several things that seem to characterize many of these
       | failures, the first is that when founders leave or die companies
       | often seem to lose drive and direction, and second companies
       | become too big and diversification seems to kill their
       | R&D/innovation.
       | 
       | For example, RCA lost its direction and fell apart when its
       | founder David Sarnoff died and his son took the helm. Similarly,
       | another spectacular failure was Hewlett Packard when its last
       | founder died.
       | 
       | That said, there are exceptions such as Apple--but then it may
       | not have been in existence long enough to tell, it hasn't been
       | around anywhere near as long as say, Philips has. Moreover, it's
       | highly dependent on Asian manufacturing, in the long-term, that
       | may be Apple's Achilles's heel.
       | 
       | Still, I think that's only part of the problem. Manufacturing and
       | innovation in Western countries are now in a state of malaise and
       | they're being quickly overtaken by Asian countries such as China.
       | Like it or not, the West generally is in a state of decline.
        
         | Daub wrote:
         | There have been many books written on why companies
         | succeed/fail. The general observations that you make all concur
         | with agreed wisdoms on this matter: small startup = mobile,
         | creative, innovative and fast moving. Estabslhsed blue-chip
         | company = the opposite.
         | 
         | So... how does a large monolith renew itself? One solution with
         | a reasonable track record is to 'replace from within', much as
         | a cuckoo replaces its host.
         | 
         | 1. Set up a small unit within your (monolith) company.
         | 
         | 2. Staff it with your best and brightest.
         | 
         | 3. Physically separate this unit from the rest of the company,
         | but not so much that they forget 'who they belong to'.
         | 
         | 4. Establish a line of direct communication between this unit
         | and a high-level manager, bypassing middle managers.
         | 
         | 5. XXXX
         | 
         | 6. Profit!
         | 
         | XXXX is the problem part. How to graft the young onto the old?
         | Failure to capitalize = Kodak (invented the digital camera but
         | could not make it 'happen'), Palm and its development of WebOS
         | (could have been a contender, but let down by poor hardware and
         | other stuff), Palo Alto and Xerox ('nuff said).
        
           | pirate787 wrote:
           | This is how Sony launched Playstation over the resistance of
           | traditionalists in Tokyo not interested in making "toys" --
           | they set up an independent company in Europe.
        
           | RcouF1uZ4gsC wrote:
           | This was actually the play that IBM did when it created the
           | PC. They opened a facility in Florida far from their
           | corporate headquarters in New York.
        
             | seanmcdirmid wrote:
             | In Boca Raton. I think they moved the whole facility to
             | Austin by now, but it was a very interesting campus when I
             | did an internship there in 1995. The office I had used to
             | be occupied on Microsoft who just stopped working with IBM
             | on OS/2. Also, it being Florida and me being only 20, no
             | one carded us when we went out for drinks.
        
           | [deleted]
        
         | arp242 wrote:
         | > Manufacturing and innovation in Western countries are now in
         | a state of malaise and they're being quickly overtaken by Asian
         | countries such as China. Like it or not, the West generally is
         | in a state of decline.
         | 
         | China is pretty good at manufacturing, and pretty terrible at
         | everything else. Research and innovation in particular are very
         | much China's weak point.
        
           | JPLeRouzic wrote:
           | > "* Research and innovation in particular are very much
           | China's weak point.*"
           | 
           | Then why in most scientific papers often at least one author
           | has a name of 'Han' origin?
        
             | pb7 wrote:
             | Because they have 1.4B people? China != people of Chinese
             | ethnicity. Your name doesn't change when you immigrate
             | somewhere.
        
         | gregoriol wrote:
         | > For example, RCA lost its direction and fell apart when its
         | founder David Sarnoff died and his son took the helm.
         | Similarly, another spectacular failure was Hewlett Packard when
         | its last founder died. > That said, there are exceptions such
         | as Apple--but then it may not have been in existence long
         | enough to tell
         | 
         | Apple would be about the same story: it hasn't created anything
         | really meaningful since Jobs, it mostly lives on the legacy
         | that has been set. Luckily for Cook the company has a good
         | storytelling and aura, but major innovation hasn't been there
         | for a long time, and when the wave slows down it may well end
         | up like the others you listed.
        
           | KerrAvon wrote:
           | Apple Watch is an entirely Tim Cook creation. Apple Silicon,
           | too.
           | 
           | Apple TV is the only non-scummy streaming box. It doesn't
           | sell your viewing data to advertisers (though individual apps
           | may).
           | 
           | Apple TV+ has the highest signal-to-noise ratio of any non-
           | niche streaming service. I don't think there's a close
           | second.
           | 
           | The latest HomePods and software iteration has made an
           | appreciable positive difference in the quality of my life --
           | the intercom feature in particular is huge. This may not be
           | unique to Apple, but it's well implemented.
           | 
           | You can kvetch about bugs, declining software quality, etc
           | (we certainly did when Jobs was running the place) -- but
           | "meaningful"? Apple is more meaningful to more people than
           | ever before.
        
             | sangnoir wrote:
             | > Apple Watch is an entirely Tim Cook creation. Apple
             | Silicon, too.
             | 
             | PA Semi was acquired before Tim Cook became CEO (2008). I
             | wouldn't say Apple Silicon is _entirely_ a Tim Cook
             | creation. https://www.notebookcheck.net/Apple-
             | s-M1-Pro-M1-Max-chips-ar...
        
           | gboss wrote:
           | That is just not true. Apple is the most valuable company in
           | the world, with the largest market cap. Steve Jobs died
           | twelve years ago. The Apple Watch and Air Pods have been huge
           | successes, so has their push into services. They also have
           | the largest profit margins of any manufacturer. They are
           | incredibly well run and have not lost their way. They also
           | didn't have to have massive layoffs as they didn't over hire
           | in the pandemic.
        
             | AnthonyMouse wrote:
             | Apple became the company with the highest market cap in the
             | year Steve Jobs died. They haven't screwed it up yet, but
             | they haven't really been tested yet. GE was the darling in
             | the 90s and their fall (excluding market-wide events)
             | didn't really come until two decades later in ~2017. The
             | question for Apple is what happens when they're on the back
             | foot.
             | 
             | Suppose Intel regains a process advantage over TSMC, so PCs
             | have a major performance advantage over Apple Silicon.
             | 
             | Suppose TSMC remains dominant, so AMD stays ahead of Intel,
             | and releases something successful in the phone market.
             | Something _open_ , unlike Qualcomm. Now you can get a high
             | end phone that runs the latest stock Android for unlimited
             | years. Qualcomm gets pushed down market so their current
             | high end becomes available at lower prices. Each of these
             | hack away at Apple's market share.
             | 
             | Microsoft has a competent hardware division. Suppose they
             | get over themselves and release an Android handset. Quality
             | hardware and no OEM crapware other than Microsoft services
             | integration. A Windows tablet that can directly run Android
             | apps. Apple then has another major competitor in their
             | biggest markets and it's the company that nearly put them
             | out of business the first time around.
             | 
             | The test is what happens when they face competent
             | competition. Qualcomm sucks and Google only cares to the
             | extent that they want to control the device to keep people
             | on their services. That's been true since the end of the
             | Jobs era but it isn't necessarily permanent.
        
               | robertlagrant wrote:
               | > Suppose Intel regains a process advantage over TSMC, so
               | PCs have a major performance advantage over Apple
               | Silicon.
               | 
               | That would be great to see, but doesn't seem to be
               | happening.
               | 
               | Apple's big competitive advantages are here: 1) they
               | control the OS and the app tools, so they can make
               | switching more seamless and painless and 2) where it is
               | painful, people are for some reason willing to take the
               | pain from Apple where they wouldn't from others.
        
               | AnthonyMouse wrote:
               | > That would be great to see, but doesn't seem to be
               | happening.
               | 
               | Intel is making bold claims, but they always do that. We
               | don't find out until we find out.
               | 
               | > Apple's big competitive advantages are here: 1) they
               | control the OS and the app tools, so they can make
               | switching more seamless and painless
               | 
               | Everybody controls the OS and the app tools. Microsoft
               | released ARM devices and nobody wanted them because the
               | vast majority of new Window devices were still amd64 and
               | developers had no reason to target the six people who had
               | Windows RT.
               | 
               | Apple typically succeeds with hardware architecture
               | changes because they only do it when the new architecture
               | has a big advantage, at which point everybody buys it and
               | understands it to be the future and developers port their
               | apps.
               | 
               | They could switch back to Intel pretty easily, because
               | people are still releasing Intel apps and Apple still
               | sells Intel Macs, but then they've stranded everyone who
               | bought Apple Silicon or spent effort to support it and
               | harmed their reputation. They might not want to do that
               | just because Intel is 10% faster. But then Intel is 10%
               | faster and the highest margin customers who just want The
               | Best are going to the other team.
               | 
               | It's choices like that which can break companies because
               | neither option is good but it's not obvious at the outset
               | which bad option is worse.
               | 
               | > and 2) where it is painful, people are for some reason
               | willing to take the pain from Apple where they wouldn't
               | from others.
               | 
               | This is the thing where their competitors are jackasses.
               | When Apple does something customer-hostile like making
               | batteries or memory non-removable or not publishing
               | driver documentation, their competitors copy it
               | immediately, because hey, Apple is making so much money,
               | shouldn't we do what they do? When they support their
               | devices for a long time or don't put ads in their OS,
               | their competitors take the "screw the customer" option
               | again.
               | 
               | So Apple has a strong reputation because the likes of
               | Qualcomm and Microsoft are _awful_. But what happens if
               | anyone ever shows up who offers the market the things
               | people like about Apple and not the things people don 't?
        
               | robertlagrant wrote:
               | > Everybody controls the OS and the app tools
               | 
               | This isn't relevant to what I'm commenting on, which is
               | that Intel might leapfrog Apple with a big new change.
               | Intel do not control the OS and the app tools.
        
               | Espressosaurus wrote:
               | Apple has managed to position itself as a lifestyle
               | product as well. It's not just the functionality, it's a
               | _brand_ in the way that Microsoft tried (and failed) to
               | be with Surface. Samsung positions itself in a similar
               | way in the cellphone world, but for Apple it 's
               | everything they make.
               | 
               | People will put up with more bullshit because it's also a
               | fashion statement.
               | 
               | And on top of that they have very good interop between
               | the different parts of their ecosystem, and make going
               | outside of that ecosystem painful, so you need a very
               | good reason to jump ship once you've gotten into it.
               | 
               | They have a pretty good moat, and that buys time for any
               | missteps to be corrected.
        
           | ralusek wrote:
           | Apple silicon is biggest innovation in mainstream personal
           | computing in at least a decade. Their upcoming move into
           | AR/VR indicates that they're at least maintaining a presence
           | at the frontier.
        
           | nl wrote:
           | > Apple would be about the same story: it hasn't created
           | anything really meaningful since Jobs, it mostly lives on the
           | legacy that has been set.
           | 
           | Try telling that to everyone who has an Apple Silicon laptop.
           | 
           | I haven't had a performance boost like that since the move to
           | SSDs.
        
             | outside1234 wrote:
             | Seriously. I literally can't think of anything I don't like
             | about my MacBook Pro M1.
        
         | Dig1t wrote:
         | The west, particularly the USA, sacrificed so many industries
         | on the alter of globalization. We gutted our workforce and told
         | ourselves we were keeping the best jobs for ourselves. The loss
         | of all those jobs and economic activity has contributed
         | significantly to the wealth gap IMO. I don't think that having
         | lots of cheap trinkets available on Amazon has been worth it,
         | to be honest.
        
         | no_wizard wrote:
         | While others have tackled the thesis as whole here, and I
         | generally agree with the overall sentiment that the value chain
         | just moved and manufacturing electronics is a really global and
         | competitive business that makes it hard to differentiate, I
         | want to poke specifically at Kodak.
         | 
         | Kodak patented and had provable manufacturing runs of _fiber
         | optic, flexible printed motherboards for computers_
         | 
         | This, as I understand it, is (was?) the "next moment" for
         | computing because fiber optics can dramatically increase the
         | bandwidth of hardware components.
         | 
         | Yet, it went nowhere, and to this day, I don't understand why.
         | Never was able to find follow up about it other than the
         | original demos in a news broadcast
        
           | onetokeoverthe wrote:
           | [dead]
        
           | yvdriess wrote:
           | It might be a lack of a system or willingness to stick with
           | it until it gets good.
           | 
           | The manager championing it moves, Business shows a low TAM,
           | there is a bad quarter and the CEO needs to appease
           | investors, etc.
        
         | brwck wrote:
         | > Like it or not, the West generally is in a state of decline.
         | 
         | Europe is in a state of decline. The US is doing fine. The
         | difference between the US and Europe is that we went up the
         | value chain ( Microsoft, Apple, Google, Facebook, Netflix,
         | Nvidia, etc ). Europe did not.
         | 
         | Consumer electronics is relatively low level tech. It was
         | "gifted" to the japanese and then the koreans and eventually
         | the chinese while we moved up the chain to the more valuable
         | internet, social media and software development.
         | 
         | Where is europe's microsoft? Their apple? Their facebook? Their
         | google? There is no "the West". No more than there is "the
         | East".
         | 
         | Edit: Also, it isn't consumer electronics that's the issue.
         | It's the future ( the next rung up the value chain ) - AI, big
         | data, quantum computing, bio-tech, green energy tech, etc. Will
         | europe even participate because currently it looks like it will
         | be only the US and China competing.
        
           | [deleted]
        
           | sschueller wrote:
           | All of these things require microchips and without ASML they
           | wouldn't exist.
           | 
           | I don't agree that Europe is on the decline. They are just in
           | a different industry than the US.
        
           | duped wrote:
           | Electronics (consumer or otherwise) isn't "low level tech."
           | This isn't a game where there's a definitive tech tree.
           | Electronics design and manufacturing is not a solved problem
           | and innovation is getting wild these days (esp in consumer
           | devices, like wearables, XR, IOT, etc).
           | 
           | Something to keep in mind is that consumer electronics are at
           | the leaves of the industrial tree - AI, big data, energy,
           | quantum computing, etc - those are branches.
        
           | oezi wrote:
           | This is just strange thinking to equate decline with some
           | sort of technological leadership.
           | 
           | Counterpoints:
           | 
           | - The US is still at a trade deficit with Europe despite the
           | strength in dominating Internet technologies.
           | 
           | - US society is much more polarized than Europe both in
           | economic equality and political affiliation.
           | 
           | - Europe has some tech unicorns. Some like Spotify or Arm
           | might ring a bell. But then again does it really matter where
           | something is incorporated? Financial markets are very
           | globalized anyway. So a European citizen can buy Apple stock
           | and profit in the same way as an American one. Some holds the
           | other way. The German car makers raking in billions each year
           | are owned by international investors all over.
           | 
           | Last on Greentech: there are players such as Vestas and
           | Siemens very much involved in renewables.
        
             | PaulHoule wrote:
             | Depends how you define "Europe."
             | 
             | I look at a lot of articles from _The Guardian_ and I 'd
             | say the UK seems to be in full on disaster mode, whether it
             | is the government trying to criminalize dissent because
             | everyone from labor unions to schoolchildren to right wing
             | anti-immigrant folks are protesting. Inflation is really
             | out of control, fresh veggies are missing from the
             | supermarket, the "small boats" situation makes any concern
             | people have about the border in the US seem like nothing.
        
               | youngNed wrote:
               | Added to that, the country is literally shitting[1]
               | itself. Its really weird living here at the moment, its
               | like some kinda of cautionary fable about the monster
               | that made everyone impose trade-sanctions on themselves,
               | but none of the towns-people are allowed to to talk about
               | it or discuss it.
               | 
               | [1] https://edition.cnn.com/travel/article/uk-beaches-
               | sewage-eng...
               | 
               | [1] https://www.bbc.co.uk/news/science-
               | environment-62813573
               | 
               | [1] https://www.mirror.co.uk/news/uk-news/uks-most-
               | polluted-beac...
               | 
               | [1] https://news.sky.com/story/huge-increase-in-raw-
               | sewage-relea...
               | 
               | [1] https://inews.co.uk/news/environment/sewage-britains-
               | rivers-...
        
               | WeylandYutani wrote:
               | Europe is a diverse continent. The North will endure the
               | South will turn into a depopulated desert.
        
               | _n_b_ wrote:
               | The Guardian comes with a certain bias for disaster-
               | mongering, especially (but not exclusively) at the
               | expense of Tories; all of those things are real problems,
               | but take it with a grain or two of salt.
               | 
               | Source: I live in the UK and still eat fresh veggies.
        
               | hilbert42 wrote:
               | _" The Guardian comes with a certain bias for disaster-
               | mongering"_
               | 
               | Perhaps so. But from my perspective of Australia the UK
               | looks as if it's on the slide (I'm not smug when saying
               | that as I reckon things here aren't much better, we've
               | always been a mob of ostriches).
               | 
               | My family/cultural heritage is mostly UK so I have no
               | pleasure in watching the decline. I've also relatives in
               | the US and France and I've lived and worked in both
               | Europe including the UK and the US so I view what's
               | happening from a broad Western perspective and I'm very
               | gloomy about what I see.
               | 
               | It's too complicated to give a quick summary of the
               | problems but if forced to do so in a sentence then I'd
               | say it's cultural. The West is being driven apart by
               | widening ideological views, there's less cohesion, fewer
               | common values and aspirations now than there once was.
               | 
               | On the other hand, the exact opposite is happening in
               | Asia, people there know their time has come and that
               | confidence and optimism drives cohesion and common
               | values.
               | 
               | BTW, I worked in Asia for a while so I've some feeling
               | for what's happening there.
        
               | lazyeye wrote:
               | "I look at a lot of articles from The Guardian and..."
               | 
               | "I watch a lot of Fox news and.."
        
             | brwck wrote:
             | > This is just strange thinking to equate decline with some
             | sort of technological leadership.
             | 
             | Technology is one of the best indicators of power,
             | progress, societal dynamism and hope for the future.
             | 
             | > - The US is still at a trade deficit with Europe despite
             | the strength in dominating Internet technologies.
             | 
             | Who cares? The US has trade deficits with mexico too.
             | 
             | > - US society is much more polarized than Europe both in
             | economic equality and political affiliation.
             | 
             | Last I checked, there isn't a war in the US and the US
             | didn't lose a member like europe did with brexit.
             | 
             | > Some like Spotify or Arm might ring a bell.
             | 
             | Arm is owned by nvidia. Spotify?
             | 
             | > So a European citizen can buy Apple stock and profit in
             | the same way as an American one.
             | 
             | Is that what we are talking about? Trading stocks
             | internationally?
             | 
             | Man, there are quite a few people here really hoping europe
             | stays weak and stagnant - especially technology-wise.
             | Wonder why. I guess trading apple stock is the same thing
             | as being able to create apple.
        
               | b3orn wrote:
               | The takeover of ARM by Nvidia was cancelled over a year
               | ago, it still belongs to SoftBank.
        
           | barrkel wrote:
           | Europe moved further up the value chain into luxury products
           | ;)
        
           | rayrey wrote:
           | Too strict of labor laws that stifle innovation
        
             | franczesko wrote:
             | How labor laws are connected with innovation and how they
             | stifle it?
        
             | 908B64B197 wrote:
             | It's also the sheer amount of laws and regulations around
             | opening and running a business that makes it really hard
             | for small organizations to get started. There's a LOT of
             | paperwork around the EU, and as soon as you want to sell to
             | the neighboring countries it's a lot of additional
             | paperwork, red tape and regulations (it's better than it
             | was still).
             | 
             | A founder from Europe explained the 4th person to join the
             | company as the 2nd employee (their first hire was an
             | engineer) was a non-technical person whose job was mostly
             | to fill out grant application forms. There are hundreds of
             | different grants for companies with a long list of
             | criterions. For example, they could have the countries
             | government (so the taxpayer) foot the bill for a fraction
             | of an employee's salary if he or she was a refugee from
             | certain target countries. Of course, the local government
             | had a similar scheme with a completely different
             | application process and slightly different criterions.
             | 
             | None of the grants had anything to do with their tech or
             | how viable the business was by the way.
        
             | dahwolf wrote:
             | Nonsense. Europe simply doesn't have venture capital.
             | Neither do most countries and regions, hence they move to
             | Silicon Valley.
        
               | p1esk wrote:
               | Why VCs don't want to invest in European startups? Or are
               | there no European startups to invest in?
        
               | manuelabeledo wrote:
               | There are.
               | 
               | Most of them move to the US, though.
        
               | pjc50 wrote:
               | The industry is a lot "closer" than people expect; it
               | runs a lot more on handshakes and people going to the
               | same parties than on cold numbers, so not only do
               | startups have to be in the US they have to be
               | specifically in SV.
               | 
               | Two decades ago at a UK chip design software startup, the
               | founders started a US branch and migrated there for just
               | this reason.
               | 
               | (The SVB bank run shows how strong the "being in the
               | right whatsapp group message chat" is)
        
               | outside1234 wrote:
               | It's not the whole story but it isn't nonsense. You
               | literally can't restructure a company in Germany without
               | doing a year long song and dance with the worker's
               | council. This is not agile enough for a startup.
        
               | hilbert42 wrote:
               | _"...without doing a year long song and dance with the
               | worker 's council."_
               | 
               | Germany is no exception, much of Europe and the UK are
               | the same. One can argue over which European country is
               | worst or best but it's small crumbs. Look at France and
               | the current arguments over retirement age, it's all part
               | of the same cultural problem I mentioned elsewhere.
               | 
               | Europe is an old society with old traditions, the US less
               | so and its west coast even less so, so it's not an
               | unexpected problem for Europe. The West's real problem is
               | how to deal with it.
               | 
               | Asia, on the other hand, has even older cultures but
               | having largely missed the old Industrial Revolution
               | they've also missed the cultural baggage and artifacts it
               | imposed on the West. This has allowed Asian countries to
               | jump over these hurdles, that's why they are doing so
               | well now.
               | 
               | I feel far from optimistic that the West can overcome
               | this cultural baggage easy. But I hope I'm wrong.
        
               | Pet_Ant wrote:
               | You don't have that problem in Canada, and you have many
               | of the same advantages but you don't have nearly the
               | amount of startups and definitely almost no big ones.
               | 
               | It's really Winner-take-all market.
        
               | speed_spread wrote:
               | Yep, Canadian tech companies either get bought out by
               | American firms or self-sabotage into oblivion
               | (Blackberry, Nortel).
        
               | 908B64B197 wrote:
               | The problem (and opportunity for US investors) is Canada
               | has almost no VC, and the few they have are extremely
               | risk averse.
               | 
               | One one side they held back economic and social growth of
               | ~1/3rd of the population for more than a century through
               | systemic racism and discrimination. On the other side,
               | the government has created little incentives for capital
               | owners to take more risks thanks to policies that
               | artificially propped up real estate (enormous immigration
               | quotas, lax laws on foreign money entering the country,
               | no market correction post 2007 crash).
               | 
               | Why invest in hard to understand and uncertain tech when
               | you can simply build luxury houses and sell them to
               | wealthy foreigners?
        
               | Archelaos wrote:
               | > This is not agile enough for a startup.
               | 
               | As of 2018, only 5% of German companies of 5 to 50
               | employees had a worker's council.[1] And even if a
               | council exists it is just max. 3 members at this size.
               | 
               | I can imagine that in some cases the council makes
               | necessary restructuring more difficult, but in the crises
               | of the last decades, works councils and trade unions in
               | Germany were much more willing to compromise than in many
               | other European economies where this so-called "social
               | partnership" is not so pronounced, for example in France.
               | All in all, it seems that worker's councils in Germany
               | are a quite successful institution to mitigate conflict
               | between employees and management.
               | 
               | [1] https://www.iab-forum.de/wp-
               | content/uploads/2019/05/BAA00031... (in German)
        
           | ajross wrote:
           | > Where is europe's microsoft? Their apple? Their facebook?
           | Their google? There is no "the West". No more than there is
           | "the East".
           | 
           | One place to start looking would be their local Apple, Meta
           | and Google offices.
           | 
           | This is true, in a sense. Big tech giants are headquartered
           | in the USA because the USA made a bunch of choices that make
           | it easy to start a tech company there. But as they grow, they
           | become multinational giants. There is a *ton* of FAANG
           | revenue moving into and through Europe in all directions.
           | Europe is just fine.
           | 
           | I mean, this is like asking why California fell so far behind
           | Delaware in startup valuation. It's true, but not meaningful.
        
             | some_random wrote:
             | They have offices in Europe to tap into the low cost talent
             | in the area, nothing more.
        
               | nine_k wrote:
               | Didn't they do the very same thing in Asia 15-20 years
               | before?
        
               | ajross wrote:
               | And why are their headquarters in silicon valley except
               | to exploit the local talent pool? With the exception of
               | actual manufacturing, _every_ site decision in a tech
               | company is about labor availability.
               | 
               | So Europe gets value from tech in proportion to its
               | concentration of talent, same as everyone else. Is Europe
               | falling behind on tech talent? Clearly not. So it'll do
               | just fine (where conversely the bay area is largely
               | tapped out at this point, there's no place to put more
               | talent even if it could find it).
        
               | some_random wrote:
               | Companies expand from where they are founded to reach new
               | labor markets, but that's not the only consideration for
               | where they begin. Startups are founded in SV (and other
               | tech hubs both in and out of the US) because it's an
               | intersection of high quality talent, permissive laws that
               | make it easy to do business (although that doesn't appear
               | to be the case in SV anymore), capital that's willing and
               | able to fund startups, and network effects of being next
               | to loads of other tech companies. Europe is missing
               | pretty much all of that outside talent, and many would
               | argue that even that is questionable because of the
               | typical European work ethic.
        
               | ajross wrote:
               | "Founding" and "located in" are rather different though.
               | I take this discussion to be about "Does Europe get a
               | reasonable share of world tech revenue and activity?".
               | And, duh, yes it does. It just doesn't have the
               | Googleplex or Apple's weird circle thing.
        
               | mejutoco wrote:
               | An additional reason for the location could be that
               | vcs/founders are located there.
               | 
               | I have seen a similar pattern, where a company has an
               | office in an unusual place because one of the founders
               | lives there, and does not want to relocate.
        
               | 908B64B197 wrote:
               | Switzerland is definitely not low cost. And it's where
               | the majority of innovation happens at FAANG Europeans
               | office.
               | 
               | Truth is, these offices are mostly there to be able to
               | use L1 visas.
        
               | WeylandYutani wrote:
               | Low cost? Amsterdam? I wish.
        
               | BossingAround wrote:
               | They have offices in Sillicon Valley to tap into the
               | desire of the locals to work themselves to death by the
               | age of 35, so that they can hopefully retire before they
               | die in order to reclaim back the health they lost while
               | trying to "make it." Nothing more.
        
               | _ph_ wrote:
               | That is definitely true for most large European cities,
               | and that is where lots of the offices are.
        
           | sohtym wrote:
           | The FAANG companies are 25 years old at this point, they
           | aren't that relevant to today's situation. Europe has had
           | many large companies going, but most got acquired by their US
           | competitors. In part because they could use offshore assets
           | and also avoid taxes once acquired.
           | 
           | But that is also only partly relevant, because the same is
           | true of the US. If the US is doing so well by that metric
           | where are the next US FAANG companies? The reality is that
           | neither Europe nor the US moved up the value chain but
           | sideways to primarily offer services.
           | 
           | That isn't because of manufacturing. Many think so because
           | they don't know much about manufacturing. It is because of
           | the cost of living. Western economies can't support a
           | knowledge based ecosystem. I can have things made in Europe,
           | or China. It doesn't matter. Where can I go and develop a
           | product for years, or work my way up in a product company, or
           | eventually hire a hundred people to do it, all without
           | suffering? The answer is nowhere because the market is
           | dominated by service focused companies that require less
           | start time and have a less variable success rate. In China,
           | its almost in every decent city.
        
             | robertlagrant wrote:
             | > they aren't that relevant to today's situation
             | 
             | They're definitely relevant in that they (plus a few others
             | such as Red Hat, Salesforce, LinkedIn, etc etc etc) are the
             | highest canopies in the US tech forest, meaning it's harder
             | to grow as tall as them without being acquired by one of
             | them. Possibly OpenAI could be one if it keeps doing well,
             | and isn't swallowed by Microsoft.
        
               | [deleted]
        
             | ikekkdcjkfke wrote:
             | Nokia, Ericson, cars, oil sector ++ dont worry
        
               | marvel_boy wrote:
               | Ericsson (with two 's'): just a integrator of third party
               | equipment, European cars: they will not outlive the EV
               | paradigm. Yes, Europe is dying.
        
               | riffraff wrote:
               | > European cars: they will not outlive the EV paradigm
               | 
               | and yet WV sold >800k electric vehicles in 2022,
               | Stellantis sold >500k and BMW sold >400k.
        
               | bobthepanda wrote:
               | Yeah, that's an odd take.
               | 
               | I would probably peg Japan as most likely to be left
               | behind by EV, to the point where Toyota is spreading FUD
               | in Japan about EVs being a dead-end in favor of hydrogen
               | fuel cell cars.
        
           | scriptproof wrote:
           | Maybe you bury europe before it dies. There are sectors still
           | successful: - Airbus. - Space. - Nuclear. - Trains. -
           | Startups. - Lithography. - etc...
        
         | sdze wrote:
         | Very nice list of examples why people should stick to index
         | investing for a pension plan.
        
           | lotsofpulp wrote:
           | And why relying on an employer existing and being financially
           | capable in 30+ years makes defined benefit pensions not make
           | sense.
        
         | zeristor wrote:
         | On reading up about Pye, I found an interesting story about the
         | valve EF50:
         | 
         | https://en.wikipedia.org/wiki/EF50
         | 
         | Used for TV, and then for radar in WWII.
         | 
         | Added:
         | 
         | http://www.r-type.org/articles/art-021.htm
        
           | fuzzfactor wrote:
           | This is something to think about.
           | 
           | The research that went into things like this was so intense
           | and demanded very rare individuals to become deeply engaged
           | in the applicable aspects of natural science, that key
           | progress was made in scattered areas after leaving the rest
           | of the world's equally-qualified technologists in the dust.
           | 
           | The companies were built as manufacturers of consumables,
           | based on cheap materials, labor, and mass production.
           | 
           | All this had occurred with wartime stakes and urgency.
           | 
           | With the arrival of transistors, a new generation of
           | researchers was deployed and the vacuum tube people continued
           | their momentum not that much longer.
           | 
           | Different kinds of fabrication facilities were needed for
           | transistors, and mainly for supplying OEMs, these were also
           | not consumable like bulbs in sockets.
           | 
           | The strong urgency could not be re-established and I think a
           | lot of the manufacturers had difficulty navigating technology
           | migrations like this. A number of pivots did not include
           | continued component manufacturing.
           | 
           | Interestingly, a big vacuum chamber is where they make the
           | semiconductors, carefully vaporizing solid-state materials in
           | the process. And when the silicon comes out, you can make a
           | radio without needing the little bulbs containing your own
           | personal vacuums.
           | 
           | Take a look at the comments here for some 21st century
           | readings of an EF50:
           | 
           | https://www.radiomuseum.org/tubes/tube_ef50.html
           | 
           | Another decade of advances gave us things like the EF96
           | (6AG5/6186) for much higher frequency use:
           | 
           | https://tube-data.com/sheets/093/6/6AG5.pdf
           | 
           | Well I'm not a radio man but these are great for audio, even
           | though they're a preamp their internal structure is a bit
           | like a beam power tube:
           | 
           | https://www.radiomuseum.org/tubes/tube_6186.html
           | 
           | So pentode, triode, tetrode they are tasty and the sockets
           | are not too unobtainable.
        
         | rayiner wrote:
         | > Still, I think that's only part of the problem. Manufacturing
         | and innovation in Western countries are now in a state of
         | malaise and they're being quickly overtaken by Asian countries
         | such as China. Like it or not, the West generally is in a state
         | of decline.
         | 
         | It's also worth connecting this to the economic stagnation in
         | Western Europe since 2008. GDP per capita has not budged in the
         | UK, France, and Italy in more than a decade.
        
           | ChuckNorris89 wrote:
           | I think you mean Real GPD per capita, not GDP per capita
           | alone as the former is also adjusted for inflation.
           | 
           | GDP per capita definitely grew, but once you subtract
           | inflation, it's close to zero for some countries or even
           | negative for countries like Greece, Italy compared to their
           | pre-2008 numbers. Ouch!
           | 
           | Most of the growth has been in Eastern Europe and the very
           | wealthy ones like Netherlands, Luxembourg, etc.
        
             | zx8080 wrote:
             | How does the GDP per capita been rising, especially
             | considering young generation has been leaving in mass right
             | since the EU association signing and borders open?
        
         | rapsey wrote:
         | > Still, I think that's only part of the problem. Manufacturing
         | and innovation in Western countries are now in a state of
         | malaise and they're being quickly overtaken by Asian countries
         | such as China. Like it or not, the West generally is in a state
         | of decline.
         | 
         | Not really. China is low end manufacture and has not moved
         | meaningfully out of that niche at all. In fact they are losing
         | their advantage with no alternative to fall back on. Chinese
         | assembly is not nearly as cheap as it was and their playbook is
         | being copied by other countries (India, Vietnam).
        
           | Incipient wrote:
           | I'd be very interested to see some data on these trends.
           | Without numbers it's impossible to say.
           | 
           | I'd be fairly confident in some rough generalisations, but
           | the specifics and magnitude I have no idea on:
           | 
           | - for the last few decades the west has moved bulk value add
           | manufacturing to China, and we've grown their
           | economy/influence accordingly
           | 
           | - China is definitely doing more high tech manufacturing,
           | wafers and EV tech - basic manufacturing is definitely moving
           | in part to cheaper countries
        
             | vincentdm wrote:
             | Here's a relevant article about it:
             | https://www.economist.com/business/2023/02/20/global-
             | firms-a...
             | 
             | Some quotes:
             | 
             | "under a weighty combination of commercial and political
             | pressure, foreign companies are beginning to pluck up the
             | courage if not to leave China entirely, then at least to
             | look beyond it for growth. Chinese labour is no longer that
             | cheap: between 2013 and 2022 manufacturing wages doubled,
             | to an average of $8.27 per hour (see chart). More
             | important, the deepening Sino-American techno-decoupling is
             | forcing manufacturers of high-tech products, especially
             | those involving advanced semiconductors, to rethink their
             | reliance on China."
             | 
             | "This alternative Asian supply chain--call it Altasia--
             | looks evenly matched with China in heft, or better (see
             | map). Its collective working-age population of 1.4bn dwarfs
             | even China's 950m. Altasia is home to 155m people aged
             | between 25 and 54 with a tertiary education, compared with
             | 145m in China--and, in contrast to ageing China, their
             | ranks look poised to expand. In many parts of Altasia wages
             | are considerably lower than in China: hourly manufacturing
             | wages in India, Malaysia, the Philippines, Thailand and
             | Vietnam are below $3, around one-third of what Chinese
             | workers now demand. And the region is already an exporting
             | power: its members sold $634bn-worth of merchandise to
             | America in the 12 months to September 2022, edging out
             | China's $614bn."
             | 
             | "Altasia will certainly not replace China soon, let alone
             | overnight. In January, for example, Panasonic announced a
             | big expansion of its Chinese operations. But in time China
             | is likely to become less attractive to foreign
             | manufacturers. Chinese labour is not getting any cheaper
             | and its graduates are not getting much more numerous.
             | America may yet realise that reducing its reliance on China
             | in practice requires closer ties with friendly countries,
             | including membership of the cptpp, the precursor of which
             | collapsed after America pulled out in 2017. And as a
             | budding alternative to China, Altasia has no equal."
        
           | trabant00 wrote:
           | Just in the tech world Xiaomi and Huawei invalidate your
           | position. I have personally own several Xiaomi products from
           | smartphones, smartwatch, robot vacuum, electric scooter, etc,
           | and they are both better and cheaper than their western
           | competitors. Not copies either, they come with their own
           | designs and features. The most surprising for me where the
           | vacuum robot who navigates better at 200$ with only a front
           | facing infrared sensor that 1000$ western products with 360
           | degree laser.
        
             | lahsuk wrote:
             | They are cheap but the amount of advertising in their
             | products atleast from where I am makes it is a turn off for
             | me.
        
           | ChuckNorris89 wrote:
           | Look on the back of your iPhone or MacBook. Where does it say
           | it's manufactured?
           | 
           | Apple and others don't build their stuff in China anymore
           | because it's the cheapest option. Far from it. The
           | electronics supplier I used to have as a customer would
           | assemble stuff in Ukraine(pre-war) because the worker wages
           | there were lower than in China. But they didn't assemble
           | iPhones there or anything close to that quality, complexity
           | or volume. If you just need a country to assemble pre-made
           | components as if it were LEGOs, that's not dealing with super
           | high volumes and high complexity, like white goods for
           | example, then even Eastern Europe is cheaper than China.
           | 
           | They build stuff in China because of the entire supply chain
           | supporting the manufacture and assembly of such cutting edge
           | devices in high volume. Stuff like machining millions of
           | small aluminium/steel frames, batteries, tiny screws, custom
           | flex cables or connectors. It's much easier to ramp up
           | production of iPhones when a lot of these parts (outside the
           | semiconductor chips which need to be imported) are developed
           | and manufactured right next door to the final assembly and
           | testing plant, instead of another country. Also, it makes
           | your prototyping much faster since you can have the next
           | iteration of a part on your doorstep in less than 24 hours.
           | 
           | Now China is already gaining significant market share in
           | cutting edge OLED display market to muscle out Samsung and
           | LG. Look up BOE. Apple used their displays in the iPhone 14
           | series and will use even more in the iPhone 15. China was
           | also pushing strong in cutting edge chip manufacturing but US
           | & allies made sure to knee-cap them in time to slow them
           | down.
           | 
           | Scuffing off China as just a country for cheap manufacturing
           | is a gross underestimation that hasn't been true in over 10
           | years.
        
           | flakeoil wrote:
           | > China is low end manufacture and has not moved meaningfully
           | out of that niche at all.
           | 
           | Eh, just about everything is manufactured in China. It's hard
           | to find anything that cannot be manufactured there. It's
           | however easy to find things that cannot be manufactured in
           | Europe or America anymore (at least at scales above lab
           | volumes).
        
             | rapsey wrote:
             | China imports huge amounts of German machinery to run their
             | factories.
        
               | flakeoil wrote:
               | Well, Kuka for one, is not German anymore. It's owned by
               | a Chinese company.
        
         | georgeecollins wrote:
         | > Like it or not, the West generally is in a state of decline.
         | 
         | I don't like it! I think the first indicator of the west's
         | downfall was our declining production of bricks. My parents
         | warned me of how poor I would one day be because our steel
         | production was in decline. Now I prepare my children to live in
         | the poverty of the United States where they have no hope of
         | ever working in a radio factory.
        
         | weinzierl wrote:
         | I think Siemens fits in the list as well.
        
           | rippercushions wrote:
           | Siemens is still huge in all sorts of markets not readily
           | visible to the general public: electricity generation and
           | transmission, industrial automation, medical equipment,
           | rolling stock (trains etc), and much more.
        
           | Daishiman wrote:
           | Siemens is an enormous high-tech conglomerate and their most
           | visible consumer arm is quite irrelevant next to they
           | production of precision manufacturing tools, nuclear
           | reactors, etc
        
           | hef19898 wrote:
           | The whole home appliance business is now owned by Bosch (it
           | used to be a joint-venture between those two companies
           | previously).
           | 
           | Consumer electronics so, everything from cameras to radios
           | and TVs, was eaten in the 80s by Japanese companies. Then
           | Korean companies stepped in, with actual manufacturing being
           | outsourced across East Asia, from China and Taiwan to Vietnam
           | and Thailand, and everyone between, left and right. Now
           | Chinese companies entered the market not just as suppliers,
           | but as actual brands, e.g. Huawei.
        
             | varjag wrote:
             | German Leica is still one of the few remaining digital
             | camera manufacturers (and now world's largest film camera
             | manufacturer).
        
               | hef19898 wrote:
               | Few digital camera manufacturers? Besides Nikon, Canon,
               | Fujifilm, Sony, Panasonic and virtually every smartphone
               | manufacturer in the world?
               | 
               | Leica glass is top notch, the real Leica glass, not the
               | branded smartphone crap lenses. And Leicas are, and
               | always have been, incredibly over priced for what they
               | are, a little bit like Apple and Tesla. They are great
               | cameras to use so, I had one for a project 20 years (too
               | scared to actually count) ago. Great camera, even greater
               | lenses. But now way near as much better as Canon or Nikon
               | as the price would suggest.
        
               | varjag wrote:
               | It's strange you didn't mention Konica, Pentax, Minolta,
               | Olympus, Hasselblad oh right that's because they are dead
               | or a virtual brand only. And the rest are pale shadows of
               | themselves 10 years ago. The market is dead, dedicated
               | digital cameras are at these point feel more obsolete
               | than film.
        
               | hef19898 wrote:
               | Come again? Hasselblad still is, and always has been, a
               | photographers dream. A niche product, desired and out of
               | reach for most. That didn't change. Olympus is one of the
               | current mirrorless brands, an isn't doing to bad, at
               | least their cameras seem to be good from what I hear.
               | 
               | The entry level and point-and-shoot camera market is more
               | or less dead so. That segment was completely taken over
               | by smartphones, for valid reasons.
        
               | antiterra wrote:
               | Hasselblad's current digital offering is only really
               | interesting in the commercial space where you only really
               | need one if you're getting paid enough to rent one on the
               | first place. Plenty of alternatives exist as well when it
               | comes to digital backs. The old film cameras are of niche
               | interest, but Hassleblad isn't making money off that.
        
               | hef19898 wrote:
               | With medium format like Hasselblad, the back are anyway
               | seperate from the body. Hasselblads are great cameras,
               | Leicas as well. Objects of desire both.
               | 
               | I did some middleformat work as a teenager, not with
               | Hasselblad so. But this whole looking down into the view
               | finder to see a mirrored picture makes you think a lot
               | more about composition and so on. I liked it, but film is
               | just to much work for me at the moment. And digital backs
               | for medium format way too expensive. I loved medium
               | format in black and white so. Damn, now I have to find
               | time to go through my dad's archive with him!
        
               | nradov wrote:
               | Olympus sold off their digital camera business to a
               | private equity firm. It's now a shadow of it's former
               | self with no expectation of growth.
               | 
               | Sony makes the sensors for Hasselblad. The sensor is the
               | heart of modern digital cameras so Hasselblad isn't
               | adding much beyond a brand name. Eventually Sony will
               | probably eat their lunch.
        
               | hef19898 wrote:
               | Late day SLR makers, full-frame that is, was basically a
               | duopoly between Nikon and Canon. As was early DSLRs, so
               | you had some more brands then. If anything with
               | mirrorless there seem to be more camera makers around
               | than before, and being on par with each other. As opposed
               | to SLRs or the early DSLR market were it was basically
               | just Canon and Nikon.
        
               | antiterra wrote:
               | Sony had a pretty solid hold on a chunk of that DSLR
               | prosumer/enthusiast market as well. Fuji and some others
               | started making headway right before mirrorless started
               | taking off.
        
               | zirgs wrote:
               | Minolta didn't die - they sold their camera business to
               | SONY. SONY still makes cameras.
        
               | actionfromafar wrote:
               | Minolta cameras almost changed names to Sony cameras, one
               | can say.
        
           | paganel wrote:
           | I had a Siemens-labeled (and I guess Siemens-manufactured)
           | desktop PC in the early 2000s, crazy to think about it now.
        
             | hef19898 wrote:
             | I think that part of Siemens ended up with Fujitsu. No idea
             | so what happened to them.
        
               | jabl wrote:
               | We had Fujitsu-Siemens PC's at a previous job. I think at
               | some point they dropped the "-Siemens" part of the name
               | so I guess Fujitsu bought out the shares and went all
               | alone.
        
             | amelius wrote:
             | There are very small companies building PCs nowadays, see
             | Framework, Pine, Purism, etc. So a much larger company can
             | do it too without even thinking if they should. Also they
             | are more B2B oriented, and the consumer part was probably a
             | side effect. Further they were probably using headless PCs
             | in their industrial systems too. It's not at all strange.
        
         | _trampeltier wrote:
         | "seem to lose drive and direction", thats what happen to the
         | company I work (until they close our factory by the end of
         | 2023). For several years, there had been many ideas what to do
         | and to change. But really just ideas, nobody did really decide
         | and said "ok, let's do it". For years I used to say we have no
         | idea where we like to go with our company. Now I know, our
         | factory get closed be the end of 2023.
        
         | vasco wrote:
         | Including Australia is weird, what does western mean in this
         | context?
        
           | gruturo wrote:
           | Australia is politically aligned with the "western" world
           | (USA's sphere of influence) rather than with russia's
           | ("Eastern bloc" at least until it fell apart) and it's quite
           | typical to see it listed as such, despite its location on the
           | planet.
           | 
           | As we're discussing manufacturing, the opposite of the
           | western world nowadays would be China (and India, Vietnam,
           | etc)
        
             | 3np wrote:
             | Some people even include Japan and Korea in "the West".
             | Unqualified, it's an ambiguous term.
        
               | Dalewyn wrote:
               | I include Japan and South Korea in "the west", they share
               | political and economical ideologies and military
               | alliances with the USA.
               | 
               | The term itself is an artifact of geographical
               | considerations from the Cold War era, with Europe and
               | Russia being west and east of the other respectively.
               | 
               | Nowadays with Russia increasingly demonstrating their
               | ineptitude, China is starting to fill "the east" shoes.
        
               | Maursault wrote:
               | > The term itself is an artifact of geographical
               | considerations from the Cold War era, with Europe and
               | Russia being west and east of the other respectively.
               | 
               | Not so much, no. The concept of the "Western World"
               | originated in the actions of the Roman emperor Diocletian
               | who divided the Roman Empire in 286 into two halves, each
               | with its own separate capital, government, and church.
        
             | throwayyy479087 wrote:
             | Vietnam and the US are weirdly close considering what the
             | US did to them. In 20 years, I expect relations with VN to
             | look like our relationship with SK.
        
           | throw2311 wrote:
           | Rich. It means rich. Before Japan in the 80s it also meant
           | white.
        
             | quonn wrote:
             | I call bullshit. The west has much more to do with economic
             | and political systems and the associated beliefs.
             | 
             | Poland, for example, is not as rich as China, yet Poland is
             | part of the west and China is not. And there are many
             | examples like that.
        
               | throw2311 wrote:
               | Poland is _not_ part of the West.
        
               | Claude_Shannon wrote:
               | As a Pole all I can say to your comment is "lol".
        
               | hef19898 wrote:
               | Poland is an EU and NATO member. You aren't getting any
               | more West than that.
        
               | skissane wrote:
               | At the UN, "the West" officially means the "Western
               | European and Others Group" (WEOG). Poland is not a
               | member, it is a member of the Eastern European Group
               | instead. Of course, many consider the UN Regional Groups
               | to be a bit of a Cold War relic. But still, it goes to
               | show that whether or not Poland is part of "the West" all
               | depends on how you choose to define "the West"
        
               | edgyquant wrote:
               | Who cares? The way normal people use the term "the west"
               | includes Poland. Some bureaucracy saying it doesn't is
               | irrelevant.
        
               | skissane wrote:
               | I think your assumption that "normal people" all use the
               | term "the west" in the same way is highly questionable.
               | Many "normal people" don't really think about what the
               | boundaries of "the west" are and either don't have an
               | opinion on whether or not Poland belongs in it, or else
               | have a different opinion from yours.
        
               | mejutoco wrote:
               | "the West" does not officially mean anything, other than
               | vaguely refer to Cold war sides. This is why it is not a
               | very useful model (like left and right in politics).
               | 
               | Poland is definitely Western aligned, as Japan or
               | Australia, which shows the absurdity of this model.
        
               | throw2311 wrote:
               | [flagged]
        
               | quonn wrote:
               | Yes, both Bulgaria and Cyprus are without any doubt part
               | of the west. Both are even part of the European Union.
               | Claiming that they are not part of the west is laughable.
               | Bulgaria is adjacent to Greece which is also part of the
               | west. Culturally large parts of the Balkans are also part
               | of the west.
        
               | throw2311 wrote:
               | That's news to my family in Cyprus who very much think of
               | themselves as living in the middle east.
        
               | quonn wrote:
               | Since you also think that Poland is not the west this
               | does not surprise me that your family thinks so.
               | 
               | This thread speaks for itself. So I'll leave it at that.
        
               | throw2311 wrote:
               | Yes, it really does. It's not like the Warsaw packt was
               | named after a town in Poland or anything.
        
               | globalise83 wrote:
               | Poland very much is part of the West, and is actually on
               | course to become one of the richest countries in Europe
               | over the next twenty years as measured by GDP per capita.
        
               | throw2311 wrote:
               | Over that same period Europe is projected to become
               | poorer than Asia in gdp ppp for the first time in 500
               | years. I'm sure I won't be hearing Poles making the case
               | they are actually part of Asia within those 20 years.
        
               | edgyquant wrote:
               | What... does this have to do with anything? You said
               | Poland isn't part of the west, it is.
        
               | Dalewyn wrote:
               | The whole west/east dichotomy is an artifact of the Cold
               | War. Countries aligned with the US and Europe are "west",
               | countries aligned with the Soviets (now Russia) are
               | "east".
               | 
               | Nowadays China is taking the helm of "east" from Russia,
               | but either way it's a geopolitical concept and remnant.
        
               | Maursault wrote:
               | > The whole west/east dichotomy is an artifact of the
               | Cold War.
               | 
               | Stop saying this because it isn't true. It is an artifact
               | of the Tetrachy of the Roman Empire.
        
             | scottLobster wrote:
             | You're confusing cause and effect. The West is defined by
             | embracing enlightenment values, democracy, and capitalism.
             | The "East" is defined as those powers that embraced
             | authoritarian rule and communism.
             | 
             | For a while there was legit economic competition, Soviet
             | GDP outpaced the US for a time in the 50s, but eventually
             | the economies of scale and efficiency produced by the
             | capitalist West out-competed the Soviets and won the Cold
             | War.
             | 
             | Saudi Arabia is rich, it is not "Western"
        
           | quonn wrote:
           | Australia has always been part of the west. It feels
           | culturally like a mix of US and UK. "The west" has never been
           | geographical. It is named like that because the center of
           | gravity has is western Europe and the US and perhaps more
           | importantly in was named in opposition to the Soviet union
           | and so looking from Europe is looks like "the west".
        
             | Maursault wrote:
             | > "The west" has never been geographical.
             | 
             | Except in its origins, which referred to Rome as opposed to
             | Constantinople.
        
         | MrBuddyCasino wrote:
         | Like it or not, the West generally is in a state of decline.
         | 
         | "In 2000, Europe had 41 of the biggest 100 companies. Now it
         | only has 15. A 63% decline in just two decades. The Economist
         | says the "most striking" reason is the lack of successful
         | startups.
         | 
         | 63% declines are something you can't repeat too many times
         | without creating the kind of situation historians give names
         | to. Two more such periods, and Europe only has 2 of the top 100
         | companies."
         | 
         | https://twitter.com/paulg/status/1400777576965185539
        
           | raverbashing wrote:
           | I'm not sure this is a very good measure. It is worrying, for
           | sure, but the top 100 is cramped
           | 
           | I'd argue the total market cap (or maybe revenue, etc) of
           | top-500 might be a better measure. Surely it has gone down
           | but maybe by less
           | 
           | Also China's growth was the exceptional thing here
           | 
           | (but yeah European management of those classic big companies
           | fumbled _a lot_ )
        
             | onetokeoverthe wrote:
             | [dead]
        
             | ChuckNorris89 wrote:
             | Market cap wise Europe looks equally worse. The market cap
             | of the US top tech companies is greater than EU's tech
             | sector combined. Ouch!
             | 
             | Europe's biggest tech companies leaders in the field are
             | Airbus, SAP and ASML.
        
               | hef19898 wrote:
               | Market cap is, IMHO, not the best measure so. Revenue or
               | market share seems a bit better. As an example, Japanese
               | companies used to have _huge_ market caps in the 90s,
               | today not so much. Those companies still exist so, and
               | are quite large players in their fields.
               | 
               | And to be honest, Google is more ad-tech then anything
               | else, Netflix is entertainment. Amazon is, depending on
               | how you measure it, 50% retail / logistics and 50% AWS.
               | Which leaves MS and Apple as true tech companies, while
               | Facebook is social media.
               | 
               | Retail, as in eCommerce, was ground breaking tech when
               | Amazon started. Today, comparable tech is available from
               | vendors like Shopify (web shops) and WiseTech (logistics
               | and fulfillment). Social media was ground breaking when
               | Facebook and MySpace came along, now it is more about
               | selling ads then anything else. Streaming was ground
               | breaking when YouTube and Netflix came around, now there
               | are countless streaming services. And some of the older
               | ones, looking at you Amazon, resembles traditional TV a
               | lot. After all they sell ads now _between_ streaming
               | (FreeVee or what 's it called) and broadcast new episodes
               | on specific days, looking at you Amazon and Disney.
        
             | MrBuddyCasino wrote:
             | The problem is not that big corporations fail - they
             | inevitably will and they arguably _should_. The problem is
             | that there are no new ones, or at least not enough to make
             | up for the losses.
        
               | raverbashing wrote:
               | Yes, however there are a couple of spin-offs and
               | rearrangements that happen before the "main company"
               | failing
               | 
               | Even in the case of Philips it spun off NXP (which is not
               | going great neither to be fair), ASML, Signify (lightning
               | business etc)
               | 
               | Siemens also dug their own hole in severe mismanagement
               | ("old people" running the show) and I think there's not
               | much more left there
        
               | ChuckNorris89 wrote:
               | _> NXP (which is not going great neither to be fair)_
               | 
               | Out of curiosity, why do you think that?
        
               | raverbashing wrote:
               | I stand corrected, maybe I had read a slightly older FY
               | results https://media.nxp.com/news-releases/news-release-
               | details/nxp...
               | 
               | (though Qualcomm has aprox 3x the quarterly revenue)
        
               | ChuckNorris89 wrote:
               | QUALCOMM sells phone modems which is a much more
               | lucrative business than NXP selling automotive chips and
               | generic ARM microcontrollers.
        
               | raverbashing wrote:
               | And NXP sold those (up to 3G models IIRC).
               | https://www.nxp.com/products/no-longer-
               | manufactured/3g-singl...
               | 
               | Why are they not selling anymore?
               | 
               | https://www.nxp.com/products/wireless:WIRELESS-
               | CONNECTIVITY
        
               | ogogmad wrote:
               | Does anyone think they know the cause?
        
               | brabel wrote:
               | Let me try: once you've reached a certain level of
               | development, your priorities change. You don't care
               | anymore about making more money than everyone else, you
               | care about living a life you enjoy, even if that means
               | you're no longer number 1 on something.
               | 
               | Other countries that are still on the first phase and do
               | prioritize beating everyone else, to the detriment of
               | their health and personal life, will start overtaking
               | you... with time, they too will start giving some
               | importance to a healthy life and will start falling
               | behind (China may already have reached that point, as we
               | now see some other Asian countries taking some pieces of
               | the cake - helped no doubt by the West's antagony to
               | China and its authoritarian government)... and so the
               | cycle continues...
               | 
               | The countries that reach the top level in qualify of
               | life, like USA, Australia and most of Europe, tend to
               | still stay quite wealthy, it seems... as they still have
               | a highly educated population capable of creating value
               | for the country and their fellow citizens... so this
               | story seems to be going well so far.
        
               | OnuRC wrote:
               | Probably real answer is aging.
        
               | eecc wrote:
               | Hmm, not so sure about that. You don't need to lose your
               | health while inventing and riding the waves of progress.
               | 
               | I tend to blame myopic capitalistic class, more
               | interested in punishing trade unions, looking for '800s
               | production organization before anything else.
        
               | nradov wrote:
               | The lack of any major threat since 1991 has allowed them
               | the political luxury of being able to make policy
               | decisions based on ideology rather than objective
               | reality. The Russian invasion of Ukraine and resulting
               | energy crisis has demonstrated the failure of that
               | approach so now they have to pivot. Expect a new wave of
               | innovation led by the energy and defense sectors.
        
               | mejutoco wrote:
               | The green ones are being attracted to the US already.
        
               | WeylandYutani wrote:
               | Until a Republican gets in power again. If we've learned
               | anything from Trump it's that America is not as
               | politically stable as it seemed.
        
               | MrBuddyCasino wrote:
               | I've talked to people involved in energy/climate/ESG
               | policy decision making. I wouldn't get my hopes up. Their
               | religion (some might call it ideology) overshadows
               | everything.
        
           | geysersam wrote:
           | This measurement is relative. Does it indicate decline in
           | Europe or development in Asia?
           | 
           | It's unreasonable to expect a region with 1/16 of the world
           | population to have 4/10 of the largest companies in the long
           | term.
           | 
           | Also, is "company size" really that good a measure of
           | economic success? Seems like it could have to do with the
           | local conditions encouraging smaller economic entities.
        
         | onetokeoverthe wrote:
         | [dead]
        
         | AnonMO wrote:
         | why is HP on the list? its revenues are on par or slightly
         | below competitors in the sector and if you add the enterprise
         | revenues its more of a 1 to 1. Hp consumer revenue 60 billion,
         | HP enterprise revenue 30 billion in comparison to dell 100
         | billion and lenovo 70 billion in annual revenue the two include
         | enterprise revenues which isn't spun off like with HP. All
         | three are at peak revenues. Aside from that cisco, ubiquiti,
         | nvdia, amd, intel(ish),LAM, AMAT, micron are the best in their
         | fields honestly its seems like EU companies are in shambles not
         | US take a look at ericsson vs huawei idk if the US has any real
         | competitors in telecommunication hardware cisco is more of a
         | networking company nowadays.
        
           | kevin_thibedeau wrote:
           | The current HP is a tiny slice of their former glory. Most of
           | the company is gone.
        
             | AnonMO wrote:
             | Hows so? aside from not having FAANG clout Its literally
             | the only company on that list that still grows yoy and its
             | revenue has all but recovered since the down trend after
             | the 2008 crash if you include the enterprise. Even the
             | number of patents given has been growing
        
               | Maursault wrote:
               | > How so?
               | 
               | It have been pretty deviating in Nov. 2015 when HP lost
               | _ewlett- ackard_.
        
               | kevin_thibedeau wrote:
               | They're missing Agilent, Keysight, their IC and LED fabs
               | and other peripheral businesses.
        
             | [deleted]
        
         | Aloha wrote:
         | Here are some others - Zenith, and Motorola too - both exist in
         | some form, but are shadows of their former selves. Also,
         | notably - Western Electric.
         | 
         | Zenith was quite successful, and was making TV sets in the US
         | until the early 90's - but eventually the lower cost of
         | overseas manufacturing caught up with them.
         | 
         | Motorola and Western are the saddest though, Motorola made
         | everything, soup to nuts used in their products, and then bit
         | by bit sold off the bits util they were left with two way
         | radios (Motorola Solutions is the survivor of the original
         | Motorola Inc). Western never really figured out divestiture,
         | there are bits of pieces of it left, if anything Avaya is the
         | closest to a spiritual successor to it (part numbering styles
         | and engineering style).
        
           | bluedays wrote:
           | I had a Zenith tv growing up. I beat the hell out of that
           | thing. It was indestructible. I was always hooking and
           | unhooking my game systems to it and I'm told often you would
           | hear loud crashes as it went slamming into the ground but it
           | never broke. Eventually we changed over to flat screens and
           | we got rid of the tv, and I'm not sure what happens to that
           | tv. Someone might still be using it today. I wonder if the
           | downfall of Zenith is that they made their products too well.
        
             | Aloha wrote:
             | I bought a Zenith System III 21 inch table top set made in
             | 1982 in 2000 or 2001 for 5 dollars at a yard sale. It
             | lasted another 18 years.
             | 
             | TV's were expected in that time period to last 20+ years,
             | they were a major investment.
             | 
             | The other interesting thing about Zenith is, its not
             | uncommon to buy an older Zenith table top radio and have it
             | work out of the box (and by older, I mean, tubes), they use
             | mostly Mica Capacitors, and they seem to last forever.
        
               | onetokeoverthe wrote:
               | [dead]
        
             | ridgered4 wrote:
             | I had a Zenith from the 1980s that I eventually had to just
             | throw out as I didn't really have space for it and the 20"
             | size had been obsolete for some tie. The thing wouldn't
             | die. It actually had a better picture than some later TVs
             | I'd owned before I inherited it from my parents. I still
             | have mixed feelings about letting it go.
        
           | buildsjets wrote:
           | Here's a GREAT IEEE article about the death of Zenith. Was on
           | HN a while ago.
           | 
           | https://spectrum.ieee.org/zenith-tv
           | 
           | Delves deeper into the "lower cost of overseas manfuacturing"
           | as cause of death for the US TV industry, with a focus on
           | Zenith. Zenith saw this coming and tried to avoid it by
           | investing in technology and R&D - and unfortunately chose to
           | invest in technically superior but unpopular or
           | uncommoditizable technologies like Betamax, digital signal
           | transmission standards, and early analog HDTV. Heck, they
           | paid to develop the standard for stereo TV broadcast audio,
           | then gave it away royalty-free.
        
             | Aloha wrote:
             | I enjoyed that. I disagree with some of the suggestions in
             | there, RCA went to PCB's early (so did Philco, who went
             | even earlier), and the reliability of their products
             | markedly suffered for it. As I mentioned in a parallel
             | article, it's not uncommon to find older (60's era) Zenith
             | electronics that still work as new from the box. Zenith
             | waited until the mainstream use of transistors to move to
             | PCB's because it solved the primary issue of PCB's - heat.
             | There (still) is no reliable way to put tubes on a PCB and
             | have it last, and this was particularly true for television
             | applications one, because of the amount of heat generated
             | by particular tubes used for certain aspects of TV design,
             | and because of the sheer number of them. Zenith went to
             | PCB's for the Transistorized sections and kept point to
             | point wiring for the tube portions in hybrid sets. It's
             | part of why they had a good reputation for quality - one
             | that persists today.
             | 
             | Interestingly enough, there is still a small rump of Zenith
             | humming along in Illinois, mostly doing R&D and Technology
             | Licensing. LG owns them now, I've often wondered if LG ever
             | introduced US Television production, if they'd do it under
             | the Zenith brand name.
             | 
             | https://zenith.com
        
         | AnthonyMouse wrote:
         | > There's several things that seem to characterize many of
         | these failures, the first is that when founders leave or die
         | companies often seem to lose drive and direction, and second
         | companies become too big and diversification seems to kill
         | their R&D/innovation.
         | 
         | The latter is the downfall of most conglomerates. Kodak
         | invented the digital camera and then failed to capitalize
         | because they were afraid it would cannibalize their film
         | division. Which was _true_ -- it _did_ -- but then the digital
         | camera business went to someone else. Leadership needs to be
         | able to make hard calls like that before it 's too late.
         | 
         | Which founders tend to be better at than MBAs.
        
         | inglor_cz wrote:
         | "Manufacturing and innovation in Western countries are now in a
         | state of malaise and they're being quickly overtaken by Asian
         | countries such as China. Like it or not, the West generally is
         | in a state of decline."
         | 
         | I think this has a lot to do with ever stricter environmental
         | regulations; construction is hitting the same roadblock,
         | environmental assessments are onerous in many places of the
         | West. As a result, manufacturing moves to Asia and housing
         | doesn't get built at all.
         | 
         | Software, which doesn't face the same hurdles, flourishes in
         | the West. A typical consumer combo is Asian hardware with
         | European/American software. I don't think we are out of
         | innovative _spirit_ just yet, we rather have to prune the
         | regulations a bit, because well-intentioned or no, one can
         | regulate himself to complete stagnation.
        
           | techdmn wrote:
           | I think you are on to something, but I would phrase it a
           | little differently. Trade policy has clearly been designed to
           | allow large multi-nationals to take advantage of lack of
           | regulation in developing countries - little to no labor,
           | environmental or other restrictions. (You know, the things
           | that generally make western life bearable.) It was clear what
           | the result of this would be: A lot of money being made off
           | the decline of the West. I view it similarly to the way a
           | C-Suite can bleed all the investment out of a successful
           | company, making money hand over fist while they drive it into
           | the ground. (G.E. & Sears come to mind.) Turns out you can do
           | the same things with a country, or even a group of countries.
           | A huge amount of wealth has been transferred to powerful
           | individuals by extracting the decades of investment that
           | built the world-leading economies of the West.
        
             | inglor_cz wrote:
             | My previous comment is obviously unpopular. Somehow, many
             | people in the software industry, which is one of the least
             | regulated activites on the planet, theoretically love
             | regulatory burden placed on _other_ people, as if  "more is
             | better". No, more isn't always better.
             | 
             | But yes, I might have phrased my point obscurely.
             | 
             | As an example of what I mean. I moved into a new building
             | here, in Czechia, twice in my life. For the first time in
             | 2008, for the second time in 2022. On both occassions, I
             | received the full documentation stack (in paper) for the
             | building.
             | 
             | The 2022 stack is almost three times as thick as the 2008
             | stack. Endless reams upon reams of certificates,
             | medaillons, permissions, test results etc. Is the 2022
             | building three times as ecological as the 2008 one? Not
             | even remotely, the 2008 building was just fine in all
             | parameters I could judge, a nice middle-class home with low
             | energy footprint.
             | 
             | Somehow, the bureaucratic documentation requirements
             | tripled in 14 years, surely not overnight; more likely, a
             | new regulation came into force every fortnight or so,
             | adding a page or two to the total stack. Each of those
             | steps was probably seen as insignificant by the
             | authorities, but their aggregate effect must be
             | significant. People spent time and resources achieving all
             | those certifications; at the end of the day, it was me who
             | paid for all that work.
             | 
             | And for what gain precisely? The law of diminishing returns
             | is strong in this regard. Most of the really important
             | regulatory stuff was probably already in place by 2008. We
             | didn't live in mud huts with outhouses and didn't burn
             | dirty oil for heat in that building.
             | 
             | This is the kind of red tape running amok that leads to
             | stagnation and high living costs in the West.
        
             | lotsofpulp wrote:
             | That just sounds like arbitrage, and absent laws preventing
             | trade, if business A does not take advantage, then business
             | B would.
             | 
             | And if country A prevented trade, then country B would take
             | advantage and reap the benefits (at least short term,
             | although the short term can be decades long).
        
         | mschuster91 wrote:
         | To add to that list two iconic German brands: AEG and Grundig.
        
         | yawniek wrote:
         | also olivetti, Italy who brought to market the very first
         | personal computer.
        
       | LeanderK wrote:
       | what about Bosch or Siemens? They still product things like
       | dishwashers or vacuums.
        
       | rbanffy wrote:
       | My uncle used to work for Philips in Brazil at its peak. They had
       | just completed building a data-center (we didn't call them like
       | that back then) in the 70's, IIRC, to host the many very large
       | IBM mainframes they operated. It was a thing to behold - the
       | whole company connected via 3278 terminals, running e-mail and
       | other productivity applications on IBM PROFS (later to be called
       | OfficeVision).
       | 
       | The building now hosts the biggest datacenter of one of the
       | largest Brazilian hosting companies.
       | 
       | Too many companies moved from making things to licensing
       | technology and brands, forgetting that the best way to get
       | valuable technologies and brands is by making things.
        
       | teekert wrote:
       | Don't we consider ASML a tech giant? A spin-out of Philips btw,
       | as is NXP for example.
       | 
       | Edit: Should have watched the movie first. To answer my question:
       | I guess we don't. And, it's electronics not tech indeed,
       | otherwise it could have included Siemens for example.
        
         | wkat4242 wrote:
         | It's very important in the tech market but as a company it's
         | not a giant.
        
           | seper8 wrote:
           | Lol.
           | 
           | Has a market cap of twice that of netflix but not a giant?
           | 
           | Where do you draw the line?
        
             | paganel wrote:
             | ASML is a geo-political play.
             | 
             | When the Chinese will be able to duplicate what ASML is
             | doing its share price will go back to "normal", i.e. to 8
             | to 10 times less what it is today (that was the level until
             | relatively recently).
        
               | seper8 wrote:
               | When indeed.
        
             | hef19898 wrote:
             | Public perception and whether or not they pay FAANGM
             | salaries? Just a wild guess.
        
               | seper8 wrote:
               | They absolutely do pay these salaries and for anyone
               | aware of what asml does the public perception is very
               | positive...
        
           | illiarian wrote:
           | 30 000 employees
           | 
           | 21 billion euros revenue, 5.6 billion net income, 50% gross
           | margin
           | 
           | 224 billion euro market cap
           | 
           | Not a giant.
        
       | acd wrote:
       | I have a old Philishave Philips shaver who is made in the
       | netherlands. Replaced the old shaver with a newer Philishave
       | shaver made in China. Turns out the old shaver is better than the
       | new. The old shaver shaves more closely to the skin for a better
       | result more smooth shave.
        
       | Zetobal wrote:
       | Western European would be right... there are some eastern
       | companies that do fine... Beko etc.
        
         | mothsonasloth wrote:
         | Beko is a Turkish company, not Eastern European.
        
         | ibz wrote:
         | Beko is Turkish though...
        
         | coldtea wrote:
         | Well, Beko is Turkish-owned, so wouldn't exactly qualify as
         | "Europe's".
         | 
         | Also not exactly a Phillips level giant (Phillips does 4-5
         | times as much revenue today, and was doing even more compared
         | to Beko in better days).
        
       | DeathArrow wrote:
       | The West is done. A combination of greed, bad politics, poor
       | education, degraded culture makes us live the last days in which
       | the West matters.
        
         | quonn wrote:
         | Agree on greed and education, disagree on everything else.
         | 
         | At least the US still has programmers - in Europe nobody wants
         | to program anymore - too much work. The big car companies
         | create software centres in Munich and hire thousands on Indians
         | on visas there, because there are no Europeans available.
         | 
         | I have recently talked to many young people about ChatGPT and
         | their conclusion is that technical skills are irrelevant and
         | they should focus only on soft skills.
         | 
         | Well - soft skills are the most basic level - it's just what
         | makes us humans. Some day the non-european people doing the
         | work will figure out that they can do the managing and talking
         | and buzz wording just as good - but that we can't do their work
         | because we have given up on learning the skills.
        
           | jen20 wrote:
           | Perhaps there are fewer Europeans available because they are
           | doing the same thing in the US: making actual money instead
           | of the pittance offered by employers in HCOL cities like
           | Munich?
        
           | mciancia wrote:
           | ...what
           | 
           | I think you are mixing up "nobody want to program in Europe"
           | with "nobody wants to program for peanuts in Europe"
        
             | quonn wrote:
             | 100k or more are not peanuts in Europe. But it's true that
             | this may be part of the problem.
        
               | DeathArrow wrote:
               | I am making far less than 100k.
        
               | wil421 wrote:
               | I've seen a lot more sub EUR100k programmers respond with
               | salaries on HN and Reddit than ones close to EUR100k.
               | 
               | A quick google search says the average is 65k in Berlin
               | and around 60k in the UK. London is probably higher for
               | sure.
        
               | zirgs wrote:
               | You can get 50-60k EUR in Eastern Europe these days if
               | you know what you're doing. Sure, it's not a FAANG level
               | salary, but cost of living is low here. So I would
               | definitely not migrate to London if they offered 60k.
        
               | DeathArrow wrote:
               | Yeah but 60k is not 100k.
        
               | zirgs wrote:
               | You can buy an apartment for less than 100k in those
               | places though.
        
               | quonn wrote:
               | In Munich 90k+ seems to be common. Berlin on the other
               | hand has lower costs of living.
        
               | wil421 wrote:
               | That would explain it, I should've looked at Munich. I
               | thought Berlin would be higher.
        
           | wil421 wrote:
           | > I have recently talked to many young people about ChatGPT
           | and their conclusion is that technical skills are irrelevant
           | and they should focus only on soft skills.
           | 
           | This is a hilarious take. I can reason with a junior
           | programmer and walk through the steps to get a result. I
           | can't lead of team of ChatGPT bots. The only thing going for
           | ChatGPT is it's hubris.
        
             | quonn wrote:
             | It's not my take - I'm just describing what people have
             | told me. I completely disagree with those people which is
             | sort of my point.
        
         | nivenkos wrote:
         | The US is doing fine - the Inflation Reduction Act will bring
         | back a lot of industry and make the business owners even
         | richer.
         | 
         | Of course as the USA's economic dominance is threatened, it
         | really ramps up the cannibalisation and exploitation of its
         | puppet states in Europe, etc.
        
       | jug wrote:
       | Death? Depends on how you look at it.
       | 
       | Check out the end user ratings and product diversity on Prisjakt,
       | the main price comparison site in Sweden.
       | 
       | https://i.imgur.com/A2j7mYi.png
       | 
       | That is a very high bar.
       | 
       | Sure, they sold out their production but their brand name is
       | pretty strong.
        
         | hobbes78 wrote:
         | But it's not really Philips anymore... It's the same with some
         | TVs with the Grundig brand, which is also very strong. It's
         | just some Chinese factory licensing the brand name... Grundig
         | went bankrupt a few years ago...
        
       | throwayyy479087 wrote:
       | Every time we have one of these threads, it fills to the top with
       | denial. Maybe it would be healthier for the EU if people would
       | accept the stats and consider how to _improve_ the situation? It
       | 's certainly possible - consider Massachusetts turnaround after
       | the 90s, same with Pittsburgh, Colombia etc.
       | 
       | Inertia kills economies, dynamism drive them. I see a lot of
       | cultural acceptance of "the way it's always been done" here.
        
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