CEO Steve Jobs says that Apple is the “only vertically integrated technology company left” — and it’s a formula that obviously works, according to an Independent UK article.
When asked why Apple generates a religious-like fervor among its customers, Jobs said the question should be “… why don’t the other computer makers inspire the same sort of excitement?”
“Our competitors try to do it cheaper; our strategy is to innovate,” Jobs said. “That has worked really well for us. There has been a huge downturn in the PC market, and you know what? Dell and Apple are the only companies making money selling PCs. Every other company is losing money at it — Gateway, HP, Sony, whoever. “HP lost, what, $150 million on PC sales last quarter? Dell does it by being cheapest. We do it by being innovative.”
The Independent also mentioned the success of the iTunes Music Store and noted that “the promise of a version for Microsoft’s Windows by the end of the year means a potential market at least 20 times bigger at a stroke.”
“I think the music companies are thrilled with the iTunes Music Store,” Jobs told the Independent. “When history looks back, the iTunes Music Store will gain recognition for being an incredible landmark in the music industry because it was the first time that online music could be sold really legally in a pay-per-download model, so good and easily and fun and fast and reliable.”
Part of Apple’s ability to pull off something like the online music store is due to its vertical integration, he explained. “Other computer makers provide one part of the solution; we’re the last company providing everything,” he said. “With the other guys, whenever something doesn’t work they all point fingers at each other –it’s the software, it’s the hardware, it’s the network. With us, we make the whole widget.”