This sounds like a homework question but I'll give the poster the benefit of the doubt.
In production terms software is essentially a fixed cost as part of the engineering design costs. AS such it is relatively independent of units sold since the incremental cost on the BOM (Bill of Materials) for software decreases as production ramps up. In many countries the software costs can amortized as an expense, so software in general has relatively low impact on the cost of a product (assuming the software works and doesn't incur high support costs).
Hardware directly affects the cost of the product's BOM and the profit margin. Reducing die costs by shrinking geometries as older foundry equipment is recycled to produce MCUs directly affects the total BOM cost and the gross profit margins. Any improvements such as adding more internal memory (replacing external parts) add to cost reductions.
In sort, if you look at the economics then focusing on better hardware has a far higher impact on pricing and profit compared to software. I suppose that makes it "stronger".
Jack Peacock
