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In case of IoT - common processing and communication chips are cheap and easy to get. Which means it's hard to make profit, especially if you spent all that money iterating in your lab, and then someone just reverse-engineers your final design and starts pumping out copies. But, as the article correctly points out, ultimately the manufacturing of a correctly designed batch of a physical item is cheap.

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This is a qualitative difference that makes physical product design an expensive process - you need to get all the things right before you start shipping you can't just patch things after you deploy. This is not something electronics-specific, this applies just as much to a new brick design. With physical items, you usually need to fab a new version for each significant change to test it, which is a time-consuming and expensive process.

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You can make a lot of changes to software within a single day, for free (sans programmer time), and deploy them to all your customers. What I mean by physical part being the harder here is that it's much slower and more expensive to iterate on. So considering that part I have to say nope, software is the harder part (to finance, to develop, to finish) here. The hardware will grow more and more to standardized processing units (GPUs, SoCs, touchdisplays for I/O) and the main activity will happen in more and more in software. And that factor is growing towards the software side on a daily basis. So the whole cost of software is margins higher than the costs of developing the hardware. And while you have one or two suicidal hardware architect on such a project, you probably have 50-100 software developers, who will use open-source plugins, libraries, operating systems, which again are each developed by 50-100 developers. However if we talk business, we also need to talk money. If that's the area you are talking about I agree. There is low amount of skilled people, low amount of debugging, low amount of standards. The point where these chips actually need to be connected to physical I/O and software, these are horribly underdeveloped areas. The physical important parts like chips are quite well understood I believe (not an expert though) and we churn these out in the millions each year and they mostly do their job. IoT _is_ about the communication, right?Д¬onsidering your interpretation of his statement, that the hardware is the hard part in IoT, makes me wonder how you define hard part. There shouldn't be much to say about htis. In the literally interpretation I disagree with the equal sign there, because a brick is not 'IoT'. Then leggomylibro points out that you could replace 'IoT' with 'physical product', which may or may not imply that hardware is the hard part in IoT. That most of IoT is actually not in the consumer area but in the industry area where people don't see it but the scale in terms of item numbers might be much bigger. Komali doesn't disagree with that point, but adds another. But you still need to get it right, otherwise you can't sell anything. The article's author wants to point out that the hardware part must be so cheap that you can't make any profit in that area any more. Well who means what is really hard to discuss at this point. Since it was still locked down by carriers and vendors and since its bandwidth to the user is poor I knew it would not deliver lasting innovation. I just saw the next incarnation of the feature phone.

Of course I have been a mobile skeptic since the iPhone. Fix that and I think you'd see even more innovation.) (The main problem with PCs is antiquated, insecure, bloated operating systems.

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The breadth of what a PC can do is incredible. PCs are more open, more extensible, and have a much wider IO path to the human in the chair.

The PC era on the other hand gave us a long, wide, and deep trench of innovation that is still not exhausted. There just isn't much else a phone can do well (and that locked down vendor fiefdoms will allow). These devices are limited and I don't think it took us long to exhaust their potential. Looking at how most other people use phones I don't think I am alone. (I want a bigger screen and a keyboard for anything in depth.) Brief interactions with services like Uber, Lyft, AirBnB, Los Angeles metro, etc.Д¦. The OSes are locked down, the screens are small, high CPU apps are out, and input is slow and cumbersome.ДЄfter trying a lot of apps I have found that a smart phone has only a few functions:ДҐ.