Comment by andywhite37

It could also mean that "mom and pop" companies can no longer get into the hardware game at all. If there is no margin for hardware sales, only companies that can afford to setup the manufacturing processes and operate them at little, no, or negative profit will be able to stay in the game. This means only companies like Apple, Microsoft, Amazon, Google, etc. who can afford to support mass hardware production with software sales, will be able to compete in the hardware market.