jayrhacker, 1 year ago

Vertical integration is when you control the entire product, in consumer electronics Apple is the gold standard; they make the software, hardware, and processors then integrate them into iPhones and macBooks. Tesla is a good example in the automotive space, their goal with the mega-factories is "raw materials in, cars out" and they work to build as many of the parts themselves as possible.

Alternately Microsoft just makes a good enough OS that runs on good enough hardware from commodity vendors, so you get good enough computers. Most auto makers buy good enough components from 2nd and 3rd tier suppliers and integrate them into good enough cars.