The computer market is not like auctioneering services. The computer market is going to be commoditized. Any fool can see that. Apple has done a nice job of delaying the commoditization and extracting value. It has been a great strategy, but it is time to change. The long term play in handsets is services. You can't dominate services unless you have a platform. You can't have a platform if you only sell to the high end of the market. I'm not saying Apple needs a shitty phone. I'm saying they need to drop their prices to take more market share and then make money from services.
To give you an example of why it needs a platform, consider a scenario where Gucci wants to provide a service that allows people to interact with their Gucci purses. It would be a complete failure because there aren't enough people with Gucci purses to collaborate.
Am I the only one that sees the long term problem with Apple's strategy? Apple and its loyal followers can all stick their heads in the sand, but it doesn't change the fact that Apple has a long term problem and Wall Street isn't a bunch of idiots for expecting Apple to address the problem. I haven't sold my Apple stock because I think there is plenty of time to fix the problem and the shift may still be a bit premature (Apple is making a hell of a lot of money). However, the shift likely needs to happen in the near future. Maybe 1-2 years. Who knows, maybe Cook has it in the works.