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Except the price doesn't matter! It does for most companies, but Apple makes no attempt to compete on price anyway. And my point is that the prices don't have to go up. Apple's margins would have to come down dramatically to keep its prices level in this situation, but that's where the $40 billion Apple already has comes in. We are talking about spending that money, remember?
I don't think your second point is particularly true, either. Most consumers have no loyalty, but a lot do, and good marketing will grab them. Apple doesn't sell computers to the "just the price matters" crowd, anyway. You can't got to Wal-Mart and buy a Mac now.






