Horizontal integration means when a few advanced-technology companies come together to produce a product that lower their costs. For example, 15 years ago, Steven Jobs created the best computer; however, the value of the Apple computer is more than $5000 which is too expensive for people to afford. Later then, with the practice of horizontal integration, Microsoft who specialized in creating software, IBM and Compaq who specialized in creating hardware and Intel and AMD who specialized in creating computer chips came together to create a cheaper computer. With this action, each company quickly reduced their products’ costs. So this caused the computers’ prices became cheaper and cheaper . Now everyone can afford them. This brought a PC revolution. Coincidentally, Steven Jobs has created the best mobile internet cellphone-iPhone, but the price of the cellphone is expensive. However, in the future, with the practice of horizontal integration, mobile internet cellphone will become cheaper and cheaper. If companies like Android and Window Mobile who specialize in making cellphone applications, MEDIATEK and QUALCOMM who specialize in making cellphone chips, HTC and Foxconn who specialize in making cellphones all come together to create cellphones. Therefore, we can predict that the future mobile internet cellphones will become cheaper and cheaper. Everyone can afford one. This is what horizontal integration brings to a big change in products and markets.
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