I think it’s naive to expect that American companies like Apple that outsource everything but design and software and reap enormous profits are going to be able to do this indefinitely. China is getting better fast at doing these things too and will have tremendous advantages when it owns the entire stack. If American companies want to stay competitive in the long run they’re going to have to break their addiction to…
Isn't this ordinary commoditization? Provided Apple keeps innovating, they'll keep ahead. They have a head start, and innovatiin is their corporate organizing principle, from hiring to advertizing. They leave commodity profits on the table. The danger is if China has a monopoly on know-how, i.e. if it's not a "commodity". But that doesn't seem to be the case. However, one day, the iphone will be "good enough", and cu…
Perhaps similar to silicon valley, with investors and many kinds of skilled labour, all in one place.