Imo, vertical integration is always great in the short term but it's a problem because in the long term it prevents competitors from getting a foothold.
The thing to understand is that the benefits of competition isn't price. It's innovation. Sometimes that innovation is how to make a component cheaper but other times it's new components. The iPhone was not the cheapest phone when it was released.
The thing to understand is that the benefits of competition isn't price. It's innovation. Sometimes that innovation is how to make a component cheaper but other times it's new components. The iPhone was not the cheapest phone when it was released.