What’s their core business? Macs? Macintosh has never reached a marketshare that could bring them the kind of wealth they’ve experienced as “The iPhone Company”.
So, right now the iPhone is their core business.
The obvious, in plain sight thing that people seem to miss is that Apple has always sold their hardware by producing content for it. The whole stack as Steve Jobs used to say. For the Mac, that meant producing the software that people consumed on the device. iPhoto, iMovie, GarageBand, Pages, Numbers... There’s other software that runs on Mac of course, but Apple provided the essentials built with the same ease of use and attention to detail that people love about the hardware. It’s what sold Macs.
Now, we’re in a smartphone and tablet era. What’s consumed the most on these devices? Video. Who owns that market now? Netflix. They get to dictate how their app works, how it looks and even where people have to go to pay for it. Netflix makes Apple virtually no money even though it’s run on their devices. What’s worse is that Netflix can run on anything; it doesn’t sell Apple hardware.
You can say, of course it doesn’t make Apple any money, it’s not an Apple company. Exactly. Netflix owes Apple nothing and that’s a dangerous recipe for a field that is going to dominate more and more what people use smartphones and tablets for. Netflix isn’t going to sell Apple hardware so Apple needs to produce content that will. Apple can’t afford to stay on the sidelines.
So yes, Apple is focusing on their core business.