You just put words in Apple's mouth. This is exactly what they should do but safer . This is entirely possible because only apple has control on their ecosystem.

If they optimize their entire hardware line (iPhone, Watch, Mac Mini, Macbook) AI enhanced with local/remote LLM model, they will win big. Imagine someone running a business can manage their entire business with iPhone/Mac/iCloud without buying any other saas services (inventory, payments, customer service).