Tim Cook, CEO of Apple, sees his company's expertise in semiconductors as a source of sustainable advantage. "Now, we’re well beyond just the surface level of design of hardware and software," he told Bloomberg Businessweek. "We’re deep in the guts. This week you saw the A7. You saw our new M chip. Well, these are only possible because many years ago we elected to start building our own silicon team, and now we have many, many people designing silicon.