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by ultraluminous 2527 days ago
No, their business is consumer electronics. Those consumer devices contain (and are built with) tech, but the tech is not the product itself. This is in comparison with MS, which for the most part sells tech.
3 comments

In what universe are bleeding-edge electronic devices like cell phones, laptops, headphones, and streaming media boxes not technology products? You seem to have a pointlessly narrow view of tech that's basically exclusively limited to software.

I mean, Apple is at the point where they're designing multiple custom chips: a general-purpose CPU (A12X), a SiP (S4) an ARM SoC (T2), a wireless-focused SoC (W3), and an audio-focused SoC (H1).

Is Intel not a "mega tech company"? They have 75% the market cap of Microsoft, and virtually all of their revenue is from producing silicon.

What do you mean by 75% of Microsoft market cap? Intel’s market cap is tiny compared to Microsoft. It probably barely makes top 20 companies.
Is Intel not a "mega tech company"? They have 75% the market cap of Microsoft, and virtually all of their revenue is from producing silicon.

Ironically this is exactly the point you miss - Intel's business it to produce and sells silicone. Intel's cohorts are AMD, ARM and NVIDIA, and they are all technology companies who's business is the development and sell of technology.

Apple produces consumer electronics, and though in many cases it also designs and produces some internal technology components, their business is not in any way dependent on selling that tech in itself. In fact it's arguable that the main influence on whether an apple component is developed in house or outsourced is economical/logistical and not tech based at all. Apple's cohorts are Sony, Samsung, LG etc, all consumer electronics providers.

Yea this is what I meant.
Technology means "the application of knowledge." A lever isnt tech per say by itself, its a tool. But knowing how to use a lever, and applying leverage to create force is technology.

A better word to use is tools. Microsoft and Apple both sell tools but Apple tools are a fashionable consumer tool sold at retail, and Microsoft are business tools sold to enterprise.

Google and Facebook give away free tools in exchange for attention.

Netflix more correctly fits your example, they dont create public tools used to accomplish something else, their tools are built internally. Same with Uber.

That's a very reductionist view. Nor do I think where you draw the lines makes any sense if you go down that path?

Netflix? Tool for easier to content delivery. Uber? Transportation tool.

Everything is a tool if you reduce it far enough.

You cant buy our rent Uber or Netflix for your own use. You can lease Outlook and buy an iPhone. With Outlook and your iPhone you can talk to your best friends (not just talk to Microsoft and Apple.) Microsoft and Apples tools are a means to an end.

With Netflix I cant buy their tool and use it to host video for my friends. I cant buy or lease Uber tech to start my own taxi network.

I think what he means to say is that software is their core product. I think the same argument could probably be made for Google, albeit a bit weaker.