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It is a losing game for Apple no matter which way they go.
The competition with hardware is so rarefied now that it is hard to tell the difference between Apple and the "others."
But the "others" are cheaper so Apple will lose share as people's budgets kick in, and if Apple competes on price, it loses two ways. It loses it's elite status, and it lowers its margin so profits suffer.
Still though Apple is sliding down, it is in an enviable position for at least a while more. My guess no more than 5 years and probably 3 years when it becomes just one of the crowd.
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