Paul Reed Smith guitars are among the best in the industry. For years they sold for $2000-$5000 and up to $150,000 for custom orders. They are like apple and don't compromise on parts or software, and they never made a truly "affordable" guitar. In 2000, they outsourced a project called "SE" to a guitar maker in Korea, and their new SE line of guitars, while still great instruments, now cost $500-600.
Now tell me, what is stopping Apple from cutting corners, finding cheaper means of making a computer, and putting a laptop on the market for $400?
Why would you miss out on that market? There is a whole mass of people out there that only want to surf the internet and REFUSE to drop $1000+ on a laptop. It doesn't take a lot of thought to make a decision on that one.
Just look at Nintendo. They discarded their attempts at "hardcore" gaming and released a system that the othere 70% of people under 30 would be interested in, along with many grandmas and 3 year olds. They DESTROY Microsoft and Sony in monthly revenue because they made a system that was made for the CASUAL gamer and made it cheap.
Apple needs to pull their wallets out of their butts and get to being intelligent again.