Earlier quoted context omitted.
honest question: why then did no one copy the iPod, and no one has copied the iPhone with any success? as soon as the iPod came out way back in the day, the criticism was that it would soon be copied. No one ever did, and I worked in the music business at the time and was familiar with everything on the market. nothing ever came close, apple made a ton of money. it's a common thing to say that it's not defensible/can…
I think the simplest answer is that apple simply kept innovating at a pace that shenzen couldn't match. Back in the iPod's hey-day, every new release was a groundbreaking improvement in miniaturization. The other OEMs were racing to copy the iPod mini while Apple was developing the iPod nano, or the iPod Colour while apple was working on the iPod video. and, of course, as another reply says the software has always be…
But now, the economy of Shenzhen has matured to the point where squeezing every ounce of production is no longer sustainable, and thus is forced to innovate. Perhaps that explains the number of hardware startups there: it's an advantage to be closely located to the manufacturer of your parts. That was also once true for Silicon Valley.
Maybe the failure of many hardware startups now can be attributed to manufacturing jobs being outsourced.