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Apple’s insurmountable platform advantage

“Since the iPhone 6s was released last month anyone who has used the device says it feels like magic. Apple – as a platform company – is so far above the competition it’s hard to fully grasp,” Steve Cheney blogs. “There are reasons why pushing down on 3D Touch feels better than any device people have ever touched, and it’s not entirely clear whether it’s the software or what’s inside that plays the larger part. The iPhone 6s presents itself in a way that lets you feel unconsciously in control yet expressive and free.”

“In early 2010 when the A4 saw the light of day I wrote why assembling an internal chip team would allow Apple to become a truly dominant platform company. ‘So the move to vertically integrate chip development helps Apple erect barriers and become a dominant platform company. This spells a larger trend – it is no longer adequate to simply be a device or software company to succeed,'” Cheney writes. “In the past five years these barriers have become totally insurmountable. iOS is the ultimate platform. Developers make unprecedented money off of it, consumers the world over love it, and Apple owns an entire market’s profits in a non-monopolistic way—unlike platforms past.”

“Platform dominance has also played out as I mentioned. Device makers (Samsung et al) and OS makers (Google, Microsoft) are not making money off smartphones. This is simply staggering to fully comprehend, and foretells ramifications few can see,” Cheney writes. “One of Steve Jobs’ biggest legacies was his decision to stop relying on 3rd party semiconductor companies and create an internal silicon design team. I would go so far as to argue it’s one of the three most important strategic decisions he ever made.”

Much, much more in the full article – recommended – here.

MacDailyNews Take: One of tthe most interesting part of the article is how Apple’s power can be extended to vehicles.

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