It's been working really well for apple. If 40% of every hardware sale is profit you don't have to sell as many as the guy who only has a 4% profit margin by a factor of ten to remain competitive. Add in all the insane profits on the app and media sale and apples viability and profitability are here for the foreseeable future. IMO. I may still be holding apple stocks at 10x what I bought them for but that in no way means im an expert. I'm very convinced however that what I say has the ring of reality to it. ;)
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