Most everyone is talking about the hardware, but what about the software that Apple develops? Gesture technology, 3D rendering, AI, all the graphic intensive stuff Apple has always been known for. There's a lot of potential for software application outside of the Apple hardware the military may be interested in too.
Yep. There always has been the potential. The reason it doesn't happen is because (as I said earlier) Apple is almost completely inflexible when it comes to creating something new, modifying an existing application, or otherwise being accommodating to the government. There are exceptions, but they're few and far in between. Microsoft, on the other hand, is more than willing to get their hands dirty.