Horace Dediu:

As computing moved from the desktop to the pocket the industry re-integrated. First, Apple moved from Product Design into Sales & Distribution with its stores. Then it moved into service with Genius bar. Then it moved into component design with the A series chips and unique batteries. Then it moved into materials with exclusive licensing of LiquidMetal. It also began to own the equipment used in its manufacturing. This in addition owning the operating system.

Now we see Microsoft following in the same footsteps. First applications came early then stores, then service, and now product design. Google is also tracking closely behind as well with its acquisition of Motorola, the results of which have yet to be revealed.

Sounds boring1, but it’s not. Horace shows us how Microsoft’s event yesterday, while riddled with holes of information, shows that there is a fundamental shift in how the competing industry is structured.

  1. Value chains? MBAs anyone? []