Being a mechanical engineer and a hardware guy myself, I may be biased, but I think hardware is alive and well. With rapid prototyping and open-sourcing of 3D p

Being a mechanical engineer and a hardware guy myself, I may be biased, but I think hardware is alive and well. With rapid prototyping and open-sourcing of 3D printers, fabrications shops and the like, the opportunity to create new hardware devices is easier now than ever before. The issue the article focuses on is commoditizing of hardware. Tablets all essentially have the same components and the economies of scale are exaggerated. When you have multiple manufacturers of very similar devices they all start reducing their margins to gain market share. This is a race to the bottom, and I believe the point the article is trying to make. However, the innovators of hardware are the winners. New devices that create new markets, new functions, new possibilities for consumers have the potential to sell large volumes at high margins. This has the advantage of the added barrier of manufacturing. Competitors take longer to tool-up and compete, giving first-movers a larger advantage than software producers. The iPod, for example, still remains the leader to this day. Hardware isn't dead, it just becomes a commodity over time. To avoid reaching the bottom, you have to be a company that's always innovating, just like software. Creating new products, vastly improving design, etc. Leave the copycats in China to turn it into a commodity, you should be onto your next big thing by the time that becomes an issue.