The notion of a "moat model" doesn't exist in the technology world. Innovation is a relentless, forward-moving force that never stops, according to Yu Kai, founder and CEO of Horizon Robotics. He made these remarks at the 2026 Yabuli Forum Summer Annual Meeting, held from September 4th to 6th in Chengdu, Sichuan.

Yu drew a sharp distinction between the tech sector and luxury goods. For a luxury or premium brand, such as a classic Louis Vuitton handbag, you don't need to innovate, you just maintain that classic high-end status. But the high-tech industry operates under a single paradigm, a surfing model. With a new wave of technological iteration every two or three years, companies must successfully ride each and every wave to stay relevant.

Yu argued that even a company like Apple enjoys no static defensive moat. If Apple didn't launch its iPhone 17, within two or three years, Qualcomm, along with Xiaomi, OPPO, and VIVO, would come and disrupt the market. Therefore, Apple must also follow the surfing model, navigating each successive wave to survive and thrive. Of course, he acknowledged that Apple has consistently managed to lead each wave so far.

These remarks were made during a panel discussion, and the transcript was compiled from on-site shorthand notes and has not been reviewed by the speaker.

Where to begin: The core lesson is that in tech, standing still is equivalent to falling behind.

Why limit the discussion to just a few key players? Because the principle applies universally. The surfing model isn't a choice but a mandatory condition for survival in the industry, and past success, like that of Apple, is not a guarantee of future security.