One of Steve Jobs’ biggest legacies was his decision to stop relying on 3rd party semiconductor companies and create an internal silicon design team. By owning its own silicon design team, Apple is able to leap into other markets which will be eaten by software running on cheap silicon. All of this supplier / buyer power that Apple has secured will be extended to cars. And because cars are lower volume by many orders of magnitude than phones, no other car maker will be able to enter the chip making game. Both the costs and the risks of designing chips are way too high. Tesla sells around 100K cars a year. Apple sold that many iPhones every 30 minutes on opening day weekend.

On Apple’s Insurmountable Platform Advantage.