Hello from the beautiful sunny San Francisco!
Still sheltering in place, I can hear birds chirping outside my window while writing this weekly newsletter.
Over the next few weeks, I want to explore, research how different industries are being impacted by Covid-19, and imagine how our world and the different industries would look like - 10 years from now.
So this week, let’s start with education.
Most industries came unprepared for the post-pandemic world, while education being one of the most challenged. According to the National Center for Education Statistics, there are 4298 public and private colleges and universities in the United States, educating 19.9 million students. A private college typically charges upward of $70,000 per annum for education, room & board, campus experience, sports, etc. In 2017–18, total revenues were $671 billion with $409 billion at public institutions, $261 billion at private institutions.
Impacted by Covid-19, higher education will never be the same. I predict universities will face some really difficult and painful financial hardship in the months ahead, maybe up to 30% of the US colleges will go out of business or acquired by other larger institutions. Two months into COVID-19:
- Revenue for universities has dropped significantly.
- Tuition, endowment, executive education, and research support all negatively impacted.
- Lucrative sports seasons have been canceled.
- Room and board payments have been refunded.
- College enrollment for the next academic year would drop by 15%. (according to Nancy Pelosi)
- International students (especially from Asia) enrollment will drop by 25%.
- Financial aid will increase.
More importantly, students are rethinking their education choices. Online classes with little teachers and classmates interaction, closed gyms, and science labs just cannot justify the high prices universities are charging. Many of these institutions are old and designed solely for in-person offline experiences. The switch to either a hybrid or a completely remote education is the biggest challenge many colleges have ever faced. And we desperately need a new software platform to restore and extend what we had before.
Perhaps tomorrow, the world’s largest school could be a software company - its learning engine will use artificial intelligence to provide personalized learning materials digitally anytime anywhere, no physical space necessary. Similar to what Apple did to the music industry by launching iTunes, all students can now download any content in any format (video, voice, text, or virtual reality) for a super low price. Tuition will drop significantly. No more student debts. Kids can finally focus on learning and not just getting an education.
We used to think the software was eating the world, there is little doubt software is going to eat education.
Here are the top mobile news this week >
- Tiktok - Bytedance generated $17B+ in revenue
- App Statistics - Meditation apps surge
- Google - Arizona sues Google over privacy
- Google - Maps help small business
- Qualcomm - New 6GHz Wi-Fi 6E chips
- ARM - New Cortex-A78 CPU for Android
- Thailand - 8 billion Telco data leak