Branding and quality are important, of course. Apple usually wins
there. And Apple’s business model is to only do the most
profitable thing, not the most widespread thing. So loss of share
may not bother Apple CEO Tim Cook. It may, in fact, be good for
both margins and shareholders.
But the history of computing has one iron-cast lesson for us all:
Devices get cheaper over time, and better over time. The
high-priced seller usually loses. This is why nobody uses $8.8
million Cray computers anymore.
Yes, that’s what Apple’s iPhone business resembles: Cray. OK, sure.