IBM Versus Apple - Vertical Integration Versus Horizontal Componentization

Apple first partners with somebody to create CPU chips for example Motorola and then eventually they either buy Motorola so that they're exclusively produced producing the chips for them. Almost everything other than like the broad-caught modem or something is all apple intellectual property throughout the entire iPhone. Apple can choose to give up being able to own any of the intellectual property for this segment we're going to partner and componentize instead, he says.