Yea. I saw that too. One day all the hardware will be loss leaders for services revenues.

That would be a shame, because that’d put Apple’s interests completely at odds with mine. Using Linux would not be too much of a hurdle, but there aren’t really any better phones or tablets. I am not going to jump from the Apple pan into the Google fire.

Oh don’t get me wrong: I love the Apple hardware. It’s by far some of the best on the market. The attention to detail and workmanship is why I buy them. I just don’t know how they will avoid the push to move everything into services and only see hardware as a means to an end that end being more services revenue. They’ll become IBM then :(

Looks like we are in the same boat.

Their hardware margin supposedly averages 40%. A 40+% price drop across the board would be a good outcome for a lot of their customers.