Apple is still doing great products, some great others amazing.
Even when they drag their feet for years just like with the Macs in the end they usually release great products.
But if they keep going higher and higher in their positioning they will alienate people first because they don't see value and later because they just can't afford anything.
And that will hurt them because computers (be it as a phone, as a watch, as a notebook) just can't be run like a small scale luxury provider.
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