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> China's GDP is expected to surpass American GDP in the next decade, and India will follow suit in another ~3 decades Right but aggregate GDP is not as import
by Karrot_Kream 9y ago
> China's GDP is expected to surpass American GDP in the next decade, and India will follow suit in another ~3 decades
Right but aggregate GDP is not as important to these companies as GDP per capita.
> If you're a company like Google, that is well established to last for another couple decades, you'd be foolhardy not to ride this massive wave.
Actually I'm pretty sure the big tech companies can make most of their revenue from high GDP-per-capita users. Not saying this is the moral choice, but financially I'm not sure that these less wealthy users will move the needle appreciably for the giants.
- whack 9y agoSure, one wealthy consumer is more lucrative than one less-wealthy consumer. But what companies really care about is market size, which is number-of-consumers * per-customer-value. Ie, aggregate GDP. This is why Walmart is worth so much more than Macy's, despite their customers having a much lower income.