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brookst • today at 5:42 PM • 0 replies • view on HN

Vertical integration is hugely valuable, but revenue comes from the top of the stack, not the bottom.

Apple makes great margins on hardware. They are 100% not in the CNC milling business. But their investments at that low level and vertical integration allow for higher margins at the top.

Cursor had... nothing. A minor, indefensible value add to a much larger and wealthier supplier.