Shades of Bill Clinton’s famous, ‘It’s the economy, stupid‘ is Steve Cheney’s insightful analysis of the House that Jobs Built. Apple’s platform.
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.
Just as there are many misunderstood reasons for Apple’s overall success, justification as to how Apple produces superior products isn’t superficially visible. This is always the case with the silicon inside of computers. It always surprises me how few people talk of or understand Apple’s silicon-making advantages.
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.
So is the Apple Car just an iPad on wheels? Of course not. The industrial design as well as everything associated with making a car as spectacular as Tesla is a massive undertaking. Apple may or may not be successful here.
But when you look through the lens of the car as a mobile device, the software and silicon look markedly similar. It’s clear electric cars will rely on 100% of the supply chain of the smartphone industry and will use the same operating systems that phones use. They will use the same CPUs, the same wireless chipsets, and run on the same advanced mobile networks.6
One posit you can derive from this is that no other car manufacturer in the world can support an internal chip team unless they also sell phones.