TIME China

Think Your Flight Delays Are Bad? Try China, Where the Military Hogs Most of the Skies

Airplanes At The Shanghai Pudong International Airport
Air China aircraft stand parked at Shanghai Pudong International Airport in Shanghai, China, on Saturday, Oct. 26, 2013. Bloomberg—Bloomberg via Getty Images

Even in this era of jam-packed commercial air travel, the armed forces still control most of China’s airspace

Last week, I flew in and out of Shanghai over two days. Both flights idled on the tarmac for more than one hour. I felt rather lucky.

Airport delays are such a constant in China that a mere one-hour wait is practically a gift from the aviation gods. International flight monitors put Chinese cities at the bottom of a list of on-time takeoffs at major airports worldwide. On July 21, nearly 200 flights leaving from Shanghai’s two airports, Pudong and Hongqiao, were cancelled. Around 120 more planes were delayed from takeoff by two or more hours.

The same day, a notice attributed by state media to the Civil Aviation Administration of China warned that a dozen airports in eastern Chinese metropolises would suffer even more serious delays through August 15. The reason? An unnamed “other user” would be hogging the skies. That aerial monopolist is thought to be the Chinese military, which even in this era of jam-packed commercial air travel still controls most of China’s airspace. On July 23, the People’s Daily, the mouthpiece of the Chinese Communist Party, tweeted a picture of dejected looking passengers camped out on the floor of the airport in Dalian, a port city in northeastern China. The cause, according to the paper, was mass cancellations stemming from “planned military activity.”

On Monday, Jiao Xuening, a resident from the southern city of Shenzhen, described on his Chinese social-media account how he had been stranded at a Shanghai airport for almost six hours. “At first I was disgruntled,” he wrote. But then he listened to a stream of flight cancellations over the loudspeaker. “I was told my flight was merely four hours delayed and was not cancelled, so I became happy again.”

On July 22, the Shanghai Daily, the state-controlled newspaper in China’s most populous city noted that Pudong airport’s outbound on-time rate had nosedived to 26% the day before. “Shanghai’s air traffic control authority has refused to explain” the Shanghai Daily complained of the delays. “With the authority remaining tight-lipped about the reasons behind this, speculation has been rife on the Internet.”

Such conjecture, though, can be dangerous. Earlier this month, some people had speculated online that a dragnet around a “high-ranking official” had perhaps prompted the grounding of planes in Shanghai. The Chinese authorities didn’t take kindly to such gossip; nearly 40 “rumor-mongers” were detained or “held” for wondering online about the flight cancellations, according to the Shanghai Daily.

The chronic flight delays are a huge hassle. But the opacity surrounding their circumstances also speaks to the inefficiencies of doing business in China. In the first half of 2014, non-financial foreign direct investment in China dipped, compared to the same period the year before. Government paranoia about social instability is such that Facebook, Google and Twitter are inaccessible within mainland China. Major foreign news websites are also blocked by censors. Basic things overseas businessmen expect to do can’t be done.

Then there’s the suffocating air pollution, which has dissuaded some expatriates from traveling to China, much less living here. Now, with the routine airport delays, it’s no longer practical to, say, fly from Hong Kong to Shanghai in the morning, attend a few meetings and then return to Hong Kong by the evening. A Beijing-Shanghai-Beijing run makes more sense by the punctual high-speed train service. But that still means committing around 10 hours to traveling the rails.

In the meantime, customer-service representatives for Chinese airlines are trying to cope as best they can. Political sensitivities are such that the carriers cannot complain about the Chinese air force’s monopoly of the skies. Employees for Air China and China Southern said they were only informed about the continuing air congestion the day after the latest round of delays began on July 21. Air China says it will send text messages to passengers’ cellphones to update them on the latest scheduling. “Most of our customers understand the situation,” said an Air China customer-service staffer in a somewhat beleaguered tone. To cope with the long waits in airports notorious for meager services, the statement attributed to the Civil Aviation Administration of China dispensed further advice: “Flight passengers please bring with you food and water.”

with reporting by Gu Yongqiang/Beijing

TIME Fast Food

CMO: Chipotle’s Successful Because It’s Been ‘Very Consistent’

Inside A Chipotle Restaurant Ahead of Earnings Figures
Employees prepare lunch orders at a Chipotle Mexican Grill restaurant at Madison Square Park in New York, U.S., on Wednesday, Jan. 29, 2014. Bloomberg—Bloomberg via Getty Images

TIME spoke with Chipotle's chief marketing officer, Mark Crumpacker, about why Chipotle is wrapping up the competition

Chipotle, the food industry’s fastest-rising star, reported earnings Monday that far exceeded Wall Street’s expectations. Despite higher menu prices because of some food supply shortages, Chipotle’s burritos (from the bowl-sheathed varieties to the tortilla-ensconced specimens) and tacos (soft and hard) are flying off the counters. The company’s sales at locations open for at least a year bounced up 17 percent over the last year, an enviable figure for any restaurant. The company’s stock rose 12 percent on Tuesday with the announcement that in three months alone, Chipotle had revenues of over $1 billion. And Chipotle predicted it will open between 180 and 195 stores in 2014. (That’s at least one every 48 hours.)

Founded in 1993 with the opening of its first store in Denver, Colorado, Chipotle was one of the first chain restaurants to move to using naturally raised animals, which meant securing a meat supply that wasn’t — and still isn’t — fed hormones and antibiotics. It got an early boost from McDonald’s, which divested its assets in 2006 when Chipotle went public. Chipotle started serving naturally-raised pork in 2000 and naturally-raised chicken 2002 and continues to refine its food supply.

To find out more about what is making Chipotle so hot, we talked to the company’s chief marketing officer and right-hand man to CEO Steve Ells, Mark Crumpacker.

TIME: I have to ask, because it’s a question I ask myself whenever I go to Chipotle: When is the guacamole going to be free?

Mark Crumpacker: [Laughs] When it costs less than steak. Guacamole is incredibly expensive. I wish it were free because people love it. I think more than half of our orders include guacamole in one form or another.

T: Chipotle raised its menu prices this year, but in-store sales still increased 17 percent. Why are people so into Chipotle despite higher prices?

MC: I wish there were a super-simple answer for it. We haven’t changed a lot about what we’re doing. We’ve been very consistent with what we’ve done over the years. Chipotle doesn’t play the typical marketing game where we add new menu items and try to get people in with gimmicks like that. So I don’t think we’ve changed so much as consumer demand has changed. I have to wonder if maybe consumers aren’t catching up with us, in a way. Frankly, we’re just really positioned well to be where those folks want to go.

T: What are foodies demanding these days, and how does that line up with what Chipotle cooks?

MC: We see a trend toward people wanting higher-quality food. And it comes in a number of different flavors. Some people are interested in health, other people are interested in the impact of the food they eat on the environment. Generally speaking, across most of the different age segments we look at, we’ve seen an increase in people’s propensity to do that. If you’re going to do that, if you’re going to care a little bit more about where your food comes from, and you’re going to eat fast food, your choice is going to get limited pretty fast. There’s not a lot you can do, and Chipotle is quite well-known for having higher quality ingredients.

T: Who does Chipotle compete with? Do you compete with non-chain, mom and pop restaurants, or Taco Bell?

MC: A lot of people talk about doing the things we’re doing, but I don’t think there’s a competitor our scale that’s doing what we’re doing with regards to spending more on our ingredients. Our food costs are just higher than the other guys’ are. We’re spending more on them and there aren’t processed menu items. We do a lot of the cooking by hand in the restaurant. There’s not a lot of that going on [with other chains].

Having said that, we compete with everybody. Our customers definitely go to McDonald’s, some of them go to Taco Bell, they go to a lot of different restaurants.

T: McDonald’s was an early investor and divested its assets in 2006. In what ways did Chipotle overlap with McDonald’s, and then how have the two companies now become different entities?

MC: The companies were always very different entities. McDonald’s had a very hands-off relationship with Chipotle. They provided support where we wanted it and that was largely on real estate, logistics, supply chain issues initially. But it quickly become apparent that we were essentially heading in a different direction and there was really no influence on the food side in the experience we created in our restaurant.

T: Do you have a favorite menu item?

MC: I’m partial to the carnitas. In fact, I snuck out of a meeting today and had that. I visit all these farms and know where all the ingredients come from and that’s the one I’m most proud of. It’s delicious.

Of all the proteins we serve, the difference between commodity pork and naturally-raised pork is the most dramatic. If you’ve ever been to a confinement hog operation, it is absolutely terrifying. It’s brutal, it’s unpleasant for the animals and the people working there. And the difference between that and our hogs which are raised, even if they’re not totally outdoors‚ and just deeply bedded pens, is really, really dramatic. The alternative is very grim.

T: So it feels good to eat it, then?

MC: Yeah. I think if you’re going to eat meat, that’s a pretty good one to eat. Having been to the farms and seen all the animals, I feel best about that one.

T: Does Chipotle’s growth have something to do with the rise in popularity of Mexican cuisine? Would this have been possible 30 years ago?

MC: When Chipotle started 21 years ago, Mexican food in the United States was very, very different. It was a large plate with multiple items, usually something doused in red or green chili sauce and refried beans. Chipotle introduced to the masses the San Francisco-style burrito, which even frankly those San Francisco burritos were smothered in chili sauce. So I wonder how much it’s people more interested in Mexican food, as it is Chipotle introduced them to a different kind of cuisine altogether.

T: What is the most number of times you’ve eaten at Chipotle in one week?

MC: This is probably going to be embarrassing. I’d say five times. I’ve never eaten there every single day. But you know, if you work there and you’re in the restaurant, that’s what you’re going to eat. I know our crews eat our food every day.

T: Any complaints about getting sick of it?

MC: [Laughs] Well, you know, one of the things I learned about Chipotle, which fascinated me when I first started, you need to be very careful about what you order the first time at Chipotle because most people eat that same thing for like, the next decade.

T: What’s Chipotle going to be doing differently five years from now?

MC: Our menu has stayed the same, but underneath that menu we’re constantly striving to improve each individual ingredient. Each one of them is one its own trajectory. If you went through our 25 or so primary ingredients, each one would have a path for some distant goal of where we’d like to go with it. There’s a particular path for chicken, and then for beef and then for pork and all those veggies. We’re almost rid of any ingredients on our menu that are genetically modified. When I look out five years I suspect that the menu will be pretty much the same, but the ingredients underlying will continue to transform as we go.

T: Thanks.

MC: Thank you.

TIME Automakers

Chrysler Recalls Up to 800,000 Jeeps Over Ignition-Switch Problems

A 2005 Jeep Grand Cherokee rolls down the assembly line Wedn
A 2005 Jeep Grand Cherokee rolls down the assembly line Wednesday, Aug. 25, 2004, at Chrysler's Jefferson North Assembly Plant in Detroit, Michigan. John F. Martin—Bloomberg/Getty Images

Older Jeep Grand Cherokees and Jeep Commanders may have a faulty ignition switch

Around 800,000 older Chrysler Jeeps could be affected by a recall due to a problem with the ignition switch, the company said in a statement Tuesday.

The company said it is aware of one reported accident associated with the defect, but no injuries.

The recall will affect a still-undetermined number of model year 2006-2007 Jeep Commanders and 2005-2007 Jeep Grand Cherokees. In vehicles affected by the problem, contact with a driver’s knee or other outside force can move the ignition switch from on to off, causing the engine to stall and cutting power brakes and power steering.

The company said its investigation is ongoing but that around 792,000 vehicles could have faulty switches, including 659,900 in the U.S. and others in Mexico, Canada, and elsewhere. Newer models have been redesigned are unaffected, the company said.

Chrysler’s recalls come as rival automaker General Motors has recalled nearly 28 million automobiles worldwide for similar ignition switch issues. The GM problems have been linked to at least 13 deaths, and the company has faced federal investigation over its handling of the situation.

Chrysler also announced that 21,000 vehicles, including certain 2014 Ram pickups, 2015 Jeep Cherokees and 2015 Chrysler 200 sedans, will be recalled for inspection and, if necessary, have their shocks and struts replaced.

TIME Microsoft

Nokia Drags Down Microsoft Profits

Microsoft logo outside the Microsoft Visitor Center in Redmond, Wash.
Ted S. Warren—AP

The software firm took over of the fledgling cell-phone maker in April

Quarterly profits at Microsoft fell 7.1% even as revenues rose, due to the company’s April acquisition of cellphone maker Nokia, the software giant said in a quarterly financial report Tuesday.

Microsoft’s core software products—like Windows and Office—continue to sell well to other businesses; revenue on commercial sales rose 11% in the last quarter. That strong performance wasn’t enough to make up for operating losses at Nokia, which totaled $692 million.

The report comes on the heels of Microsoft announcing it will slash up to 18,000 jobs over the coming year. Most of those cuts, the company said, will come from Nokia. The workforce drawdown is the largest in the company’s 39-year history.

The report covers the fiscal fourth quarter, which ended June 30. Revenue for the period is up 18% year over year.

“Our solid execution and expense discipline allowed us to deliver a strong finish to the fiscal year,” said Amy Hood, executive vice president and chief financial officer at Microsoft.

 

 

 

TIME

Apple Sees Surging iPhone Sales, but iPad Sluggish

Apple Unveils New Versions Of Popular iPad
An attendee looks at the new iPad Mini during an Apple announcement at the Yerba Buena Center for the Arts on October 22, 2013 in San Francisco, California. Justin Sullivan—Getty Images

As tablets face competition from big phones

Updated July 22 at 6:20 p.m. ET

Apple topped analysts’ projections in the third quarter of its fiscal year with profits of $7.7 billion, the company disclosed in its quarterly earnings report Tuesday. That figure amounted to earnings per share of $1.28, beating analysts’ projections of $1.23 per share. Apple’s revenue for the quarter was $37.4 billion, below analysts’ expectations of $38 billion.

Apple’s profits were again driven by the iPhone, which moved 35.2 million units during the quarter, up from 31.2 million during the same quarter in 2013. At $19.8 billion in sales, the iPhone comprised nearly 53 percent of Apple’s total revenue. iPhone sales were down compared to to the second quarter, when the device sold 43.7 million units. The period between April and June has historically been a weak time for iPhone sales as consumers anticipate the launch of the latest device in the line, which typically occurs in September.

While the iPhone’s business continues to grow, the iPad is showing signs of slowing. The tablet sold 13.3 million units in the quarter, down 9 percent year-over-year and down 19 percent from the period between January and March of this year. This was the second straight quarter the iPad slipped in year-over-year sales—in the second fiscal quarter the device line was down 16 percent. In fact, the entire tablet market was down in the U.S. early this year because of increased competition from large-screen smartphones.

In a conference call with investors, Apple CEO Tim Cook defended the iPad’s performance, saying that the device still has a promising future. “IPad sales met our expectations but we realize that they didn’t meet many of yours,” he said. “What’s most important to us is that customers are enjoying their iPads and using them heavily.”

Cook pointed to a recently-announced partnership with IBM to push Apple devices and services to enterprise customers as an avenue for iPad sales growth. Currently only about 20 percent of tablet owners use the devices for work-related activities, according to an April survey by JD Power. “I honestly believe the opportunity is huge,” Cook said. He also noted that the device’s sales are still growing quickly in less-developed markets such as China and the Middle East.

Though Apple had to defend the iPad, the company noted iTunes software as another area of strong growth. Revenue in the sector, which is comprised mostly of sales in the iTunes and App Stores, grew 12 percent year-over-year to $4.5 billion.

Apple’s line of Macintosh desktops and laptops grew 18 percent year-over-year to 4.4 million units in sales. The iPod line sold 2.9 million units in the quarter, down 36 percent from the same period last year.

Overall the earnings report did little to move Apple stock, which inched up less than 1 percent in after-hours trading. Both investors and Apple fans are currently awaiting the newest generation of iPhone, which will reportedly boast at least one model with a 5.5-inch screen and is expected to launch sometime this fall.

“iPhone 6 is clearly what people are pointing to,” says Bill Kreher, an Apple analyst at Edward Jones. “The company faces heightened execution risk as it increasingly relies on new products to boost growth.”

MONEY retirement planning

Half of Workers Are on Track to Retire Well—Here’s How to Join Them

140618_money_gen_13
iStock

Save 15% of pay for 30 years and you will be fine, a new study shows. Save for longer, and it gets much easier.

The shift from traditional pensions to 401(k) plans hasn’t gone well for most workers. One in two U.S. households are destined for a lifestyle downgrade in retirement, data show, as guaranteed lifetime income from old-style pensions disappears. But new research finds that most families can stay on track to a comfortable retirement by regularly saving 15% of pay over 30 years. Start earlier, and you only need to put away 10%.

The news isn’t all bad if you’re starting late. Even folks past age 50 have time to adjust. But clearly those with the shortest windows to retirement have the steepest hill to climb—and probably need to start factoring in a longer working life and more austere retirement lifestyle right away.

The typical middle-income household headed by someone 50-plus, and with a projected retirement shortfall, would need to boost its savings rate by 29 percentage points to retire comfortably at age 65, according to the Center for Retirement Research at Boston College. That would mean saving, say, 39% of every paycheck instead of 10%.

Calling this savings rate “unrealistic,” researchers Alicia H. Munnell, Anthony Webb, and Wenliang Hou conclude in their paper, “A better strategy for these households would be to work longer and cut current and future consumption in order to reduce the required saving rate to a more feasible level.” One thing the paper does not mention is that one in 10 U.S. workers is limited or unable to work due to poor health—and those past age 65 are three times more likely to have this issue, according to the National Health Interview Survey.

On a cheerier note, younger middle-income workers currently on track to fall short of retirement income still have time to realize their dreams by boosting savings just 7 to 13 percentage points (the younger you are, the lower the savings rate needed), research shows. The impact of starting early and letting your savings compound over more years cannot be overstated.

The typical wage earner planning to retire at age 65 in 2040 would need to build a nest egg of $538,000, the paper states. By purchasing an immediate annuity, you would replace 34% of pre-retirement income. Social Security would replace 36% of pre-retirement income—in all giving the household 70% of pre-retirement income, which is considered an acceptable minimum level. To reach this savings goal this household would have to save 15% of every paycheck starting at age 35. But if the household planned to work to age 70—or started saving five years earlier—it would need to save just 6% of every paycheck.

In general, the typical middle-income household must save enough to produce a third of its retirement income. Low-income households need only get a quarter of retirement income from savings. High-income households (with a more expensive lifestyle) need to save enough to produce half their retirement income, the paper found.

Related links:

Why It’s Never Too Late to Fix Your Finances

The Amazing Result of Actually Trying to Save Money

 

TIME Earnings

Comcast Pulls in $2 Billion in Profit in Q2

National Cable and Telecommunications Association Cable Show
The Comcast Corp. logo is seen as Brian Roberts, chairman and chief executive officer of Comcast Corp., right, speaks during a news conference at the National Cable and Telecommunications Association (NCTA) Cable Show in Washington, D.C., U.S., on Tuesday, June 11, 2013. Bloomberg—Bloomberg via Getty Images

Comcast is in the process of trying to merge with Time Warner Cable

Comcast’s cable and Internet business is generating more money as it prepares to try to merge with Time Warner Cable. The communications giant posted overall revenue of $16.8 billion, a 3.5 percent increase from second quarter of 2013 that slightly missed analysts’ projection of $16.95 billion.

The company had net income of $2 billion, up almost 15 percent from a year ago. Earnings per share were 76 cents, beating analysts’ expectations of 72 cents.

The company shed 144,000 video customers during the quarter, and now has 22.5 million. However, Comcast added 203,000 new Internet subscribers for a total of 21.3 million. Overall revenue from Comcast’s cable, Internet and voice business jumped 5.4 percent to $11 billion from the same quarter a year ago.

Revenue from the company’s NBCUniversal Division, which includes television networks, theme parks and movie studios, was essentially flat year-over-year at $6 billion, a 0.3 percent increase from last year.

Comcast is looking to massively increase its footprint in the cable market by merging with Time Warner Cable. If the merger is approved by federal regulators, the combined company will have about 30 million cable subscribers.

MONEY stocks

The Spoiler Lurking in Netflix’s Blockbuster Growth

Woman watching Netflix on iPad
courtesy of Netflix

Rather than crow about its strong quarter, the streaming-video giant tempered expectations for the remainder of the year. That should tell you something.

At first blush, Netflix reported what seemed like blockbuster results.

On Monday, the streaming video giant said its earnings had more than doubled, to $71 million or $1.15 a share in the recently ended second quarter. Even better, Netflix NETFLIX INC. NFLX -4.6155% gained 570,000 new streaming subscribers in the U.S., despite hiking costs by $1 a month in May, moving the company past the 50 million-subscriber mark.

Yet rather than spending much time crowing about these results, Netflix officials used its quarterly earnings report to try to temper investors’ expectations for the coming quarter. Why?

Either second-quarter results weren’t that great after all — or the rest of the year will be much more challenging than expected.

It’s the latter.

A few months ago, Morningstar analyst Peter Wahlstrom made this key point:

“The market is too optimistic about Netflix’s future sales growth and profitability potential. We remain skeptical about Netflix’s aggressive international push; we recognize the addressable market is large but sustainable and material profitability will be much harder than management currently anticipates and may drag on cash flow for the foreseeable future.”

He was right to be worried. On Monday, Netflix provided a clue as to how difficult it will be to sustain profitability while making an aggressive international push.

In a letter to shareholders, CEO Reed Hastings and chief financial officer David Wells warned that the company’s international video streaming operations, whose “contribution losses” had been gradually declining lately, would jump from $15 million in the second quarter to $42 million in the third quarter.

Meanwhile, they lowered expectations for third quarter earnings, forecasting that they would come in around 89 cents a share, down from $1.15 in the second quarter and considerably lower than the expected $1.02 a share, according to consensus forecasts by analysts tracked by Zacks.com.

Company leaders also used their earnings release to again reiterate their calls for so-called net neutrality, hinting at another area of potential vulnerability. Backers of net neutrality want Internet Service Providers (ISPs) such as Verizon, Comcast, and AT&T to treat all data equally, without giving preferential treatment — and speed — to preferred customers.

Without such a system, companies like Netflix have had to address speed issues by entering into individual agreements with ISPs to stream their content more quickly. The problem, though, as MONEY’s Taylor Tepper recently pointed out, is that such deals give “Internet service providers leverage to assess more such ‘tolls’ down the road.”

Yesterday, in after-hours trading, Netflix shares jumped immediately after the company announced its earnings.

NFLX Price Chart

NFLX Price data by YCharts

But this morning, skeptical investors are starting to voice their concerns. So don’t be surprised if today, after digesting the actual details, the market reacts in a slightly different way.

TIME Companies

The Next iPhone Will Reportedly Have a Way Bigger Screen

Apple is reportedly increasing the size of the iPhone display from 4 inches to options of 4.7 or 5.5 inches

Apple has ordered larger-sized screens for its next generation of iPhones this year, the Wall Street Journal reports, betting that consumer demand for bigger phone displays will help wrest market share from competitors like Samsung.

The company has asked suppliers to manufacture between 70 and 80 million units of large-screen iPhones with 4.7-inch and 5.5-inch displays. The most recent versions of the iPhone, the 5s and 5C, have only 4-inch diagonal displays.

Samsung, which has a 29% share of the smartphone market compared with Apple’s 18%, produces the top-selling Galaxy S with a 4.8-inch display. Apple’s move into larger screens may be a competitive strike against Samsung just as the company prepares to release its third-quarter results Tuesday and provide a financial outlook for the period ending in September.

Apple’s 70- to 80-million unit initial order for what is being called the iPhone 6 is significantly larger than the 50- to 60 million-unit initial order of the iPhone 5S and C.

[WSJ]

TIME Companies

This Might Be Apple’s New Biggest Problem

Apple Profit Margins
The exterior of the downtown Apple Store in Central Hong Kong in May 2014. George Rose—Getty Images

Analysts’ average estimate for the gross profit margin is 38.1%

fortunelogo-blue
This post is in partnership with Fortune, which offers the latest business and finance news. Read the article below originally published at Fortune.com.

In a note to clients Monday, UBS’s Steven Milunovich raised his Apple price target to $115 from $100 on signs that the company’s gross margins — long the envy of its competitors — are once again on the upswing.

Gross margin, or GM, may be the number Apple analysts watch most closely — even more than iPhone unit sales, although the two are closely linked (the more iPhones Apple sells, the better its gross margins).

GM is a ratio calculated by the formula GM=(Rev-Cost)/Rev, and it measures how efficiently a company turns sales into profits — something Apple does better than most because it doesn’t have to cut prices to stay competitive.

Instead, Apple’s gross margins tend follow their own internal rhythms, falling when the company is tooling up to build new products and rising as efficiencies increase and component prices fall.

Gross margins peaked in Q2 2012 at an extraordinary 47.4% on the strength of sales of the iPhone 4S and dropped to 36.9% in Q3 2013 as Apple was gearing up to launch, in the same quarter, two new iPhones and pair of iPads.

For the rest of the story, go to Fortune.com.

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