Apple isn’t a hardware or software company – it’s an ecosystem company

“There seems to be an ongoing debate among pundits on whether Apple is a hardware or a software company,” Eric Jackson writes for Forbes.

“Apple critics like to portray it as a hardware company and how its competitive advantage is built on shaky ground, as there will always be a new gadget that a competitor develops which could be more desirable than what Apple’s currently got,” Jackson writes. “As the years have rolled on however, it’s clear that Apple’s competitive advantage isn’t built on its hardware or its software. Apple’s greatest competitive advantage is its ecosystem.”

“While it’s certainly true that Apple needs to continue to build exceptional products, the bearish argument overlooks Apple’s primary source of competitive advantage these days: its ecosystem,” Jackson writes. “Apple has been able to maintain consistent profitability in an industry where almost everyone else is unprofitable. I think it’s more to do with the Apple ecosystem than anything else… While the critics might call it a walled garden approach, Apple looks at it as adding so much massive value to its users that there’s no reason to use any other products.”

Read more in the full article here.

MacDailyNews Take: We concur, obviously:

“Apple controls the whole widget for a reason. Apple’s not a hardware or a software company. They are both. It’s the total experience that Apple offers — hardware and software, both designed to complement each other — that is without peer.” – MacDailyNews Take, June 5, 2012


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