publishers smileFascinating piece by Ben Thompson of Stratechery fame.

Stand Stih – founder of Acer talks about what has become to be known as the ‘smiling curve’. His hypothesis is that “value is created at the edges”. For example in his world of PCs – he saw patents and technology driving value at one end of the scale – think Windoze and Intel – and brand and service driving value at the other end – value being driven by (say) SI’s – think Accenture, IBM et al.

Acer meanwhile – as a fabricator of the machines – along with the other OEMs – found themselves in a race to the bottom.

 

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