Apple's Growing Bet on Hardware | Hacker News Reader

Apple's Growing Bet on Hardware

aboveavalon.com

10 pointsmercutio29 comments

Hardware in general seems to become more commoditized. In China Apple has lost market share to local firms that produce cheap phones with good specs. And most people there spends a lot their time in WeChat anyway so the phone's OS isn't as important.

As this commoditization happens over time, hardware also seems to reach a point of just being good enough. You can see this today with people deciding that their iPhone 6 is good enough and they don't need an iPhone X.

Apple obviously realizes this and is trying to diversify its revenue with increased growth in its services area, but a lot of those services are directly tied to its iPhone. If people buy fewer new iPhones that is bad for Apple, and if people buy a cheaper competitors' phone that is doubly bad for Apple because it doesn't get services revenue from that person either.

> hardware also seems to reach a point of just being good enough

Good enough. That's the key. I too didn't replace my 6s Plus. Because it does all the things I need. And runs all the apps I use (Evernote, browser, photos, many more).

Apple isn’t a hardware company?

I know... it's pretty hard to continue reading when the first statement is obviously false.

Apple as hardware company is common sense among HN crowd :D

Apple is a design company and software in a secondary measure. They are not a manufacturer. They used to be one up to early 90s, making most of Macintoshes in house.

Real hardware companies are mostly in China, Taiwan. (Such as Foxconn.) Except some advanced microchip foundries.

Well most of the software is free, you tell me. :)

Normally there is a lot of doubt surrounding whether Chinese manufacturer can be trusted with the IP/design etc. Any insights on how Apple is able to ensure this for so many years?

Apple has always been a hardware company.

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