While I understand everyone’s annoyance over Apple neglecting yet another product which they have come to love and rely on, I think much of the criticism here is unjustified.
For one, people are not buying iPhones and iPads because they are using an AirPort router in their house. It's a silly assertion. In addition, needing to buy a third-party wireless router is not going to lower the value found with the broad Apple ecosystem that includes smartphones, tablets, smartwatches, laptops, desktops, and the software/services that combines it all.
Apple likely made the decision that there just wasn’t any point to continue dedicating resources and attention to take on chipmakers like Broadcom in order to come out with some kind of differentiated router. Instead, it would make more sense to just remove the features from AirPort routers that users do want, like wireless music playback, and put the functionality into new kinds of Apple device.
For example, we have the homepod, which handles airplay. Apple TV handles HomeKit. We will likely see other products in the future which replicate any other desired functionality of the airport routers.
Overall, I think this is a good move by Apple. I don’t think this decision is being driven by money. Instead, management is simply reallocating precious resources on products that can utilize Apple hardware, software, and services to produce an experience that improves users lives.
Apple management is neither being clueless nor reckless here.
