Lines are fading between software and hardware companies

Is it a hardware or software company? Recently, the line between the two is fading away fast. The continued success of Apple is leading the field. Apple controls all aspects of its products including hardware, software, and service. With its nationwide network of Apple Stores, it is also somewhat taking control of the sales of its products. Just from its iPad, Apple made $195 of profit from each unit in 2011 and made $26 billion overall profits from all its businesses. One bad thing that happened to the U.S. economy from Apple is closing down of its manufacturing in Fremont, California and moving it to Singapore and Ireland in 1992.

However, the new phenomenon, making hardware and software by the same company, is helping the U.S. economy. In June 2012, the software magnate, Microsoft announced that it will get into the hardware business by introducing a new tablet called Surface. The search engine behemoth, Google is teaming up with Asustek Computer to build its Nexus 7. Since 2007, Amazon is making its Kindle. Oracle’s 2009 purchase of Sun Microsystems get them into the manufacture of servers. Barnes & Noble have been saved by its Nook e-book reader at a time when Border’s Bookstore went under.