Eric Jackson argues that Apple is neither a hardware or a software company. It’s an ecosystem company.
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.
As time goes on, Apple continues to give more and more benefits to its users who choose to buy Apple accessories with their core iPhone (and, yes, your Mac has now become an accessory to your iPhone).
All of which is true, but customers buy into the ecosystem by purchasing hardware. The software is included in the ecosystem, which, itself is so seamless and useful that nothing else is comparable, therefore, the competitive edge, a barrier difficult for competitors to overcome.