What do Apple, NVIDIA, and Tesla have in common? They build world-class physical products and pair them with powerful software. In this article, you’ll learn how this combo is helping companies dominate their markets—and how your business can apply these lessons. Even for smaller manufacturers, this approach is more doable (and valuable) than you think.
The Secret Growth Formula Behind the Most Valuable Companies on Earth
If you’re running a manufacturing business today, you’re likely focused on the physical—your machines, your tools, your production line, and the quality of what you make. That’s expected. That’s your foundation. But here’s what most manufacturers miss: the biggest, fastest-growing companies in the world aren’t just making great physical products—they’re combining those products with smart, useful software that keeps customers engaged, loyal, and spending more.
Let’s take a step back. Look at Apple. Their iPhone is a remarkable piece of hardware—but it’s the software (iOS, iCloud, App Store, TV+, services like Apple Music) that creates the ecosystem people stay in for years. Same with NVIDIA. Their chips are top-tier, but it’s their software stack—especially CUDA—that makes them indispensable for AI developers and scientists. Tesla? They sell cars, but they behave more like a software company—sending out regular updates, enabling features after you’ve already bought the car, and gathering data to improve every single vehicle.
Now, you might be thinking: “That’s great for tech giants. What does this have to do with my business?” Here’s the answer: This model isn’t just for trillion-dollar companies. It’s a way of thinking—and it works at any scale.
Imagine you make industrial pumps. Traditionally, you might sell them, offer a warranty, and that’s it. But what if you created a simple app that tracks pump performance, predicts maintenance needs, and alerts users before something goes wrong? Now you’re not just a pump manufacturer—you’re a reliability partner. That’s value. That’s differentiation. That’s recurring revenue.
Or take a business that builds packaging machinery. What if the machine came with a built-in interface showing real-time output, waste metrics, and remote diagnostics? Suddenly, you’ve created a software-enabled product that helps your customer save time and money every single day—and gives you a reason to stay in touch, upsell services, or offer maintenance subscriptions.
The insight here is this: when you blend software into your physical products—even in simple ways—you move from being a commodity supplier to being a strategic partner. That shift changes how customers see you. It opens the door to recurring revenue, longer relationships, and higher margins.
You don’t need to become a software company overnight. But you do need to think differently. Start small. Think about what information your product produces, or what problems your customers still face after buying it. Then ask: Can I solve that with software? Can I make that insight visible? Can I give them a tool that saves time or cuts risk?
You’ll be surprised how far even a small effort can go. And the truth is, this mindset is becoming the new standard. Your competitors may already be experimenting with it. The businesses that figure it out early will be the ones growing faster, locking in customer loyalty, and commanding premium pricing.
Want to learn how NVIDIA and Tesla actually pulled this off? Let’s break those down next.
1. NVIDIA: More Than Just Chips—It’s the Software That Powers Entire Industries
NVIDIA started out making high-performance graphics chips for gaming. But what transformed them into a $3 trillion company wasn’t just faster silicon—it was software. Specifically, the CUDA platform. CUDA (short for Compute Unified Device Architecture) gave developers a way to write software that could take full advantage of NVIDIA’s GPUs, unlocking a new wave of innovation in AI, scientific computing, video rendering, and more.
Before CUDA, using GPUs for anything beyond graphics was a complex and limited endeavor. CUDA made it accessible. It turned the hardware into a platform—and that platform became essential for industries like autonomous vehicles, climate modeling, and generative AI. NVIDIA didn’t just sell chips—they sold the ability to build the future.
The takeaway for manufacturers is clear: software can make your physical product more useful, more powerful, and more integrated into your customer’s business. It can turn a tool into a platform.
Say you manufacture factory floor equipment. Imagine offering a developer toolkit or API that lets your larger customers integrate your equipment into their own systems. Or maybe a digital interface that tracks usage data and feeds it into their ERP. This isn’t science fiction. It’s practical and increasingly expected.
NVIDIA’s success didn’t happen because they built the fastest chip. It happened because they made their chip the easiest and most valuable to use. Software is what made the difference—and it’s something even small manufacturers can begin applying in practical, incremental ways.
2. Tesla: Software Makes the Car Smarter Over Time—And the Customer More Loyal
Tesla’s cars are innovative in many ways, but what really sets them apart is how they behave more like iPhones than traditional vehicles. Tesla vehicles receive over-the-air updates that improve performance, fix bugs, add features, and even upgrade functionality long after purchase. That’s unheard of in traditional car manufacturing—and it has rewritten customer expectations.
Want better battery range? A software update can sometimes give it to you. Want to turn on full self-driving (if you paid for it)? It appears like flipping a switch. Tesla’s vehicles are platforms for software, and customers buy into that ongoing experience, not just the metal and wheels.
The result? Tesla has extremely loyal customers, recurring software revenue, and real-time data from every vehicle to improve their technology. That creates a feedback loop—hardware enabling software, software enhancing hardware.
Now think about your business. Do you sell machines, equipment, or tools that stay in use for years? What if they could get smarter over time? Could you offer updates or new features via a connected system? What if your equipment could collect usage data and feed that back to your support team, so they could proactively assist the customer before issues arise?
Even something simple—like a web-based dashboard or a remote monitoring app—can shift how your product is perceived. Instead of being a static investment, it becomes a living tool that gets better, more efficient, or easier to maintain over time.
Tesla’s brilliance isn’t in making the best car—it’s in reimagining what a car can be when software is part of the core strategy. Manufacturers who think the same way can apply this to industrial equipment, HVAC systems, medical devices, and beyond.
3. Apple: Building an Ecosystem Where the Hardware and Software Sell Each Other
Apple is the clearest example of how deeply integrated software and hardware can drive exponential growth. They’ve mastered what most companies barely attempt: making services and hardware work together so well that one drives demand for the other.
The iPhone sells because it’s a great product—but it’s also because of iOS, iMessage, FaceTime, Apple Music, iCloud, the App Store, TV+, and more. Each of those services makes the hardware more valuable—and together, they keep customers in Apple’s ecosystem for years. It’s not just about selling a phone anymore. Apple now makes over $100 billion annually from services alone.
One clever strategy Apple uses is to offer just enough free service to make it sticky, and then layer in paid versions. Free iCloud storage? Sure—but you’ll probably upgrade to a paid plan. Apple Music trial? That often becomes a long-term subscription. Once you’re in, you’re unlikely to switch.
For manufacturers, this is where a big opportunity lies. What “services” could you wrap around your hardware? Think beyond traditional support contracts. Could you offer a digital assistant for setup? A training video series accessible by scanning a QR code on the machine? An online performance dashboard with premium analytics?
None of these ideas require reinventing your business model—but they do add a new layer of value. Even better, they give you an ongoing reason to stay connected to your customers.
The beauty of Apple’s strategy is that it keeps the brand in the customer’s daily life. You can do the same in manufacturing. Whether it’s equipment, components, or specialty tools—if you can deliver something digital that helps the customer work smarter, they’ll remember your name, renew their services, and come back when they need more.
4. John Deere: Making Farm Equipment Smarter with Precision Software
For over a century, John Deere has been known for making some of the most durable and trusted agricultural machinery on the planet. But in recent years, they’ve quietly made one of the biggest transformations in the manufacturing world: turning tractors and harvesters into data-powered, software-enabled platforms.
Today, John Deere machines are packed with sensors, GPS, and embedded software that help farmers track soil conditions, monitor planting and harvesting in real time, and even automate equipment operation. Their cloud-based platform, John Deere Operations Center, lets farmers analyze yield maps, weather data, and equipment performance from anywhere.
The shift wasn’t just about adding software for the sake of it. It was about solving real problems farmers face—like wasted seed, fuel inefficiencies, equipment downtime, and unpredictable yields. With software, John Deere gave its customers more control over the entire process. It also created a new kind of relationship: instead of just selling equipment, John Deere became a long-term technology partner.
One of the smartest moves John Deere made was tying this software into value. Predictive maintenance reduces equipment failure. GPS-guided planting increases output. Real-time data lets farmers make better decisions. Each of these features directly impacts the customer’s bottom line—and they’re hard to walk away from once you’ve seen the benefits.
For manufacturers, this example is a goldmine. Think about the machines you build. What data do they generate while they run? Could you build a simple dashboard that helps customers track performance or schedule maintenance? Could you partner with an analytics provider to offer insight into productivity trends?
Even if your equipment isn’t as complex as a $500,000 tractor, the principle is the same. If you can help your customers get better results from your product—even slightly—you’ve added tremendous value. And if that insight comes from software only you can provide, it becomes a lasting competitive edge.
John Deere didn’t abandon what made it great—they just built on it. And they show us that even in industries steeped in tradition, customers are hungry for technology that makes their lives easier, more profitable, and more predictable.
5. Peloton: Hardware + Software = A Community Customers Don’t Want to Leave
On the surface, Peloton sells an exercise bike. But that’s only half the story. What really sets Peloton apart—and what allowed it to grow explosively—is the experience wrapped around the hardware. The software platform transforms a piece of fitness equipment into a daily habit, a source of motivation, and a sense of belonging.
Peloton’s app streams live and on-demand classes right to the screen on the bike. Riders can compete on leaderboards, follow friends, earn badges, and join themed workout series. It’s not just exercise—it’s a digital lifestyle.
The business result? Recurring revenue through monthly subscriptions, incredibly high engagement, and a customer base that sticks around. The bike isn’t just a tool—it’s a gateway into a broader experience that keeps users coming back.
Now imagine this approach in a manufacturing context. Let’s say you build welding machines. Could you offer an app with how-to videos, certification training, or gamified challenges for operators? What if your equipment had built-in prompts that encouraged users to try new techniques—or a leaderboard showing top performers across a facility?
Or maybe you manufacture packaging machines. Could you create a knowledge hub or peer support network where users share tips, troubleshoot problems, and showcase success stories?
The point isn’t to turn every machine into a fitness app. It’s to think about what makes your customers return, stay engaged, or rely on you more deeply. Can you offer them something digital that makes them feel connected—not just to your product, but to your brand or their own progress?
Peloton’s genius wasn’t inventing a better bike. It was giving users a reason to care about their workout every day, and building a brand experience so strong it became part of their identity. Manufacturers who apply this thinking—even in subtle ways—can build loyalty that no competitor can easily replace.
3 Actionable Takeaways for Manufacturers
Think Software-First When Designing Your Next Product
Don’t treat software as an afterthought. Even basic functionality—like remote diagnostics, update alerts, or simple performance tracking—can dramatically increase the value your product delivers. Think: how can I make my product smarter or easier to use through software?
Start Small—One Simple App or Digital Tool Can Add Massive Value
You don’t need to build the next CUDA or Tesla OS. Instead, pick your most popular product and ask: what digital pain point does the customer have after purchase? Then, build a simple tool or feature to solve it. Even a small app can show customers that you’re invested in their success.
Create Recurring Value, Not Just One-Time Sales
Software allows you to build customer relationships that continue long after the sale. Whether it’s a paid analytics service, usage tracking, training, or remote monitoring, recurring digital services give you predictable revenue and a tighter relationship with your customer.