An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and retain more customers than its competition. Firstly, vertical integration has given competitive advantage to Apple, as it manufacturers their chips, controls their manufacturing, follows extremely strict software qualities, and operates in a nearly closed ecosystem of proprietary retail stores. These makes Apple has more control of its value chain and its module costs (Jackson). Secondary, Apple is the most innovation company. In last year, Apple launched Apple Pay with simplifies payments.There are new partners, banks and companies, willing to join the Apple Pay. Therefore, iPhone users can use Apple Pay to pay in those cooperative stores.