Smaller, cheaper, less profitable machines -- what is Apple thinking?! They should totally try to be Dell.
Smaller, cheaper, less profitable can be turned to be:
Versatile, value-priced, and selling in much higher volume.
Sorry, but not everyone needs a 2000+ dollar workstation for general use. They just don't.
I certainly don't.
Some see the need for All-in-one. Good for them. Not everyone does. Some want big screens, some want two screens, some want NO screens.
And not everyone wants the compromises with laptops, when the machine isn't going to go anywhere.
There is a huge hole, bigger than ever.
An xMac, Mac Midi, or whatever they want to call a headless small factor desktop machine is not going to impinge on those who want MacPro.
It probably won't impinge much on those who want a nice AIO form factor and small desktop footprint.
What it will do, is help people buy Apple products rather than buying Dell, HP, or other, even home-built machines. Even if the profits aren't as hugely high, isn't it better than turning good customers away, without an option?
And it is a bogus argument that it is too niche. What is Apple if it isn't a hugely successful company at putting niche technology into the mainstream.
Secondly, a modest/moderate desktop machine is most company's bread and butter, not their niche machines. Most hardware companies are not going broke by offering mainstream desktop hardware, and it would not amount to Apple spreading itself too thin. If Apple is spread too thin, it isn't by computer variation.
And, BTW, the car company analogy doesn't work, either. Their problem isn't variation, it is that the products don't match the demand, or the expectation of quality for the price. And their costs are out of control, and their decision making is entrenched in bureaucracy, so improvement is difficult to come by.
Apple is also not meeting a demand, although their quality is pretty good, with a few niggles in terms of details. Their decision making is starting to be a little cloudy, if their detail niggles are telling about the decisions going on.