undefined | Better HN

0 pointssmk_4y ago0 comments

Example of good vertical integration: Apple M1/AirPods/iPhone/Apple Music. That's a very convenient ecosystem for users, and it allows Apple to reduce manufacturing cost. We both agree there should be strong competitors to Apple, for the lower manufacturing costs to propagate to consumers as well.

>Yes, that's exactly what I want to accomplish. These companies are too big & powerful.

Economic growth is a consequence of gains in productivity. Therefore, we should champion economic growth because it allows us to do more during a day.

>Huge companies use acquisitions to squash innovation.

Another idea: people set up really innovate companies because they hope to be acquired by a bigger company. In other words – big companies enable an incentive structure favouring innovation. In general, VC:s (which drive most innovation today) hope to exit via an IPO – but selling to a big tech-company is a safety cushion. If we remove the safety cushion – the VC market will be more risk averse and less willing to spend on innovative, but unproven, ideas.

0 comments

owaislone4y ago

> Example of good vertical integration: Apple M1/AirPods/iPhone/Apple Music. That's a very convenient ecosystem for users, and it allows Apple to reduce manufacturing cost. We both agree there should be strong competitors to Apple, for the lower manufacturing costs to propagate to consumers as well.

I agree this is a very good thing but I think we'd both agree that Apple buying Arm would probably be a very bad thing in the medium-long run. I don't know what the solution is but as a consumer, I'd like companies to collaborate and thrive in a single big ecosystem vs having one big company. For example, Activision games can still be on Game Pass without Microsoft completely owning them and as an end user, I think that is more balanced.

j / k navigate · click thread line to collapse

0 comments

owaislone4y ago

j / k navigate · click thread line to collapse