Apple is known for creating some of the world’s most popular and innovative products, from iPhones to iPads. But now it appears the tech giant is taking its vertical integration strategy to a whole new level by creating its own components like chips and display technology. It’s all part of Apple’s larger goal to bring more of its technology under one roof and gain complete control over the design and function of its products. Let’s take a closer look at why this strategy makes sense for Apple.
The most obvious benefit of Apple taking control over more of its operations is cost savings. By cutting out expensive contracts with outside companies, Apple can save money that can be better used elsewhere, whether that means investing back into the company or simply increasing profits. That said, money isn’t the only thing that Apple stands to gain from this change.
By controlling many aspects of its product design process, Apple can increase efficiency gains as they move away from outsourcing certain components to contract partners like Intel or Qualcomm. This could help them speed up production times and get their products to market faster than ever before. Plus, having complete control over the design process means that they can experiment with different ideas without worrying about relying on another company’s input or capabilities.
But perhaps the biggest benefit of all is that it gives Apple an edge over competitors who don’t have such an integrated approach when it comes to product design and development. With total control over everything from chips to screens, Apple can make sure their products are truly unique—something that other companies just won’t be able to match. This gives them a competitive advantage in terms of pricing, features, and innovation—all things customers care about when shopping for a new device or piece of technology.
Overall, it’s clear why Apple wants total control over its products from top to bottom: cost savings, efficiency gains, and gaining a competitive advantage in terms of innovation are just a few benefits this approach has for them. And by replacing pricey contracts with outside companies with internal solutions designed by their own engineers and designers, they’re well on their way towards achieving their goal. In the future, we’ll likely see even more examples of how far this strategy will take them as they continue innovating and pushing boundaries in the tech industry!
