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I think it can be both. For example, in the Apple context, they commoditize software (including operating systems, mobile apps, and desktop apps) in order to m
by theorique 13y ago
I think it can be both.
For example, in the Apple context, they commoditize software (including operating systems, mobile apps, and desktop apps) in order to make their platform attractive and appealing, and then make their money through high profit margins on hardware sales. An operating system is a special case of software, since it's so much more intimate with the Apple-designed and controlled hardware than most (any?) other applications.
In this case, creating their own software is a cost that makes money indirectly, by making their hardware and their platform more attractive. And certainly, more apps and cheaper apps (commodity) available for Apple computers (non-commodity) is good for Apple, whether those apps come from Apple themselves or from external developers. (Obviously having both is good for different reasons - in house, you have more control; external apps create a developer base with lock-in).