That's a good bar

Good morning Staker! Here’s what’s cookin’ today. Phone costs could rise sharply, Google might just know everything about you, what to make of the big Hollywood merger, and how we almost didn’t get A Charlie Brown Christmas 😧

Let’s get into it!

Smartphones are among the most in-demand products on the planet, and they might be about to get more expensive as fewer memory chips are produced.

According to global market research firm, International Data Corporation (IDC), some of the biggest players in smartphone memory are wrestling with higher production costs, and finding the endless flow of investment into AI data centers is making AI memory a better business to get into.

In fact, memory and storage maker Micron announced it’s exiting the consumer memory (smartphones, tablets, computers) business entirely to focus more on memory for AI data centers.

This is helping contribute to what’s expected to be a 30% surge in consumer memory costs in Q4 of this year, followed potentially by another 20% in 2026, according to Counterpoint Research.

The average smartphone could sell for $465 next year compared to $457 this year, says IDC senior research director Nabila Popal, bringing the global smartphone market to a value of $578.9 billion.

When discount stores start posting major sales gains, it’s another sign the economy is heading in the wrong direction.

Dollar General saw 5% sales growth in Q3, with 2.5% growth in same-store sales. Traffic was also up, suggesting trade-down activity was at play as consumers invested more time trying to find the best bang for their buck.

The store has been revamping its internal decor, making each location cleaner and easier to navigate, which isn’t just helping Dollar General compete against middle-price-point stores during an economic downturn, but also compete against its own peers, including Dollar Tree, and even Walmart in some cases.

Dollar Tree itself posted record sales at Halloween this year, offering higher-margin products at higher prices than one would normally expect at Dollar Tree, but still for less than what you’d find in stores like Target or middle-income grocery chains.

Target’s sales are shrinking as consumers split further into the K-shaped economy. Luxury buyers are still spending, and stores typically shopped by lower-income consumers are seeing sales shoot up to record levels, as foot traffic continues to increase.

When it comes to how AI will enhance Google’s business in the near future, it’s all about hyper-personalization, according to VP of product for Search, Robby Stein.

Stein spoke to the Limitless Podcast last week, and described how user interactions with Google will eventually resemble an ongoing conversation with an assistant rather than a typical search.

He shared data insights from Google Search, revealing most people are looking for specific personalized recommendations when interacting with Google’s AI products, rather than general information.

“They want to know where to eat for dinner, they want to know where to travel with their family,” Stein told Limitless. “So we think there’s a huge opportunity for our AI to know you better and then to be uniquely helpful because of that knowledge.”

Google’s Gemini AI app already integrates with Gmail, Calendar, Drive, and can be integrated with YouTube, Maps, WhatsApp, and Spotify. Imagine how much information could be gathered about you by an AI model that has access to these apps?

Stein ostensibly said these types of integrations could be used to make the hyper-personalized recommendations that people are looking for, even if they don’t realize it.

“It’s almost weird not to personalize it,” he said.

Netflix announced a deal to acquire Warner Brothers Discovery in a $72 billion merger the other day that could result in Netflix adding major titles like Game of Thrones, The Sopranos, and Succession.

The streaming giant said the acquisition is expected to go through by Q3 of next year, once Warner Brothers spins off CNN, Discovery, TBS, and TNT into separate entities excluded from the merger.

It’s yet to be seen what will become of HBO Max, what many consider the crown jewel of the transaction. In announcing the merger, Netflix said that, for now, HBO Max and its 130 million subscribers would remain a separate platform from Netflix.

"Nothing is changing today. Both streaming services will continue to operate separately. We have more steps to complete before the deal is closed, including regulatory and shareholder approvals," it said in a letter to subscribers.

Furthermore, Netflix co-CEO Gregory Peters said on a conference call that HBO remains “a powerful brand” for consumers, suggesting the platform could remain a standalone entity.

Diamonds need pressure and time to form, but the Charlie Brown Christmas special creators only had pressure and very little time.

Just about six months before it aired for the first time on Dec. 9, 1965, Lee Mendelson’s documentary about Peanuts creator Charles Schultz had been rejected by almost everyone he pitched it to. Then he got a call from Coca-Cola.

The kicker? The company wasn’t interested in the documentary but they did wanted to know if he’d ever considered making a Charlie Brown Christmas special. He lied and said yes. Coke asked him to have a draft ready in four days.

“So I call Mr. Schulz and I tell him, ‘I have good news and bad news. The good news is I think I just sold A Charlie Brown Christmas. The bad news is we have to write it tomorrow,'” Mendelson recalled.

Coca-Cola loved the draft, and that gave Mendelson, Schultz, animator Bill Melendez, and composer Vince Guaraldi just six months to put together a final product. It, was ready ten days before it was supposed to air on CBS.

Upon seeing it, CBS had issues with the jazz score, the lack of a laugh track, the fact that actual children voiced the characters, and Linus’ reading of Luke 2:8-14.

Schultz and Mendelson disagreed with CBS’ concerns and knew they had leverage, because Coca-Cola had already sponsored and promoted the show. They refused to make changes, CBS backed down, and it was a merry, merry Christmas, Charlie Brown!

Alt ctrl delete

Happy Monday, Staker. It’s the start of Computer Science Education Week and if you ever sat down in front of an IBM PET and learned how to code your name in Basic, you’re gonna love today’s game. 🤣 #nerdalert

But even if you didn’t, you’ll surely remember all the great movies and music inspired by the dawn of personal computing in the late ’70s and early ’80s. So go on and give today’s trivia a try.

Complete the game and earn a shot at a $25 eGift Card ;)

Winner will be notified on Tuesday afternoon. Keep an eye on your inbox and don’t forget to check your spam folder!*