Charts of the Week in Digital Economy
Xiaomi Technology's international expansion continues
Markets outside of China contributed 50% of revenue for the first time last quarter.
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Accelerated Digital Transformation Benefiting Meituan
Hit by COVID-19, Meituan-Dianping's total food delivery volume declined 17% in Q120. However, as more branded restaurants accelerating digital transformations and moving online, the average value per order increased 14% YoY. The negative impact of COVID-19 will pass eventually, but the structural change towards digitalization is here to stay.
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Meituan's Food Delivery Unit Economics
Meituan-Dianping's food delivery revenue per order consistently outgrew the rider cost. Total delivery cost as % of revenue dropped from 86% in Q1'18 to 74% in the latest quarter, which was driving steady gross margin expansion.
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Increased Content of Semi in 5G Smartphones
We all expect increased content of semi in 5G smartphones. Micron Technology confirmed that in the case of memory and storage.
In a recent presentation, Head of Mobile Business pointed out the shift from 64/128GB to 128/256GB of NAND, 4/6GB to 6/8GB of DRAM in 5G phones, driven by data-intensive user cases.
CEO Sanjay Mehrotra also mentioned that "5G is going to be a long multi-year growth cycle for smartphones. It will reignite the smartphone unit sales and 5G also drives increased content for memory and storage" in an investor conference.
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SaaS Companies, Building Their Own Data Center
We are trying to connect the dots here. Leading SaaS companies are building their own data centers for critical workloads, instead of purely depending on the public cloud. ServiceNow spent $83 million on CAPEX in Q1' 20, part of which went to all-flash data centers. We learned that from Pure Storage's earnings last week.
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