Why does everyone care how profitable their vendor is?
You are the one paying for those high margins and lack of innovation, after all.
Would you hire a plumber that way?
"This guy charges double and wears a $20,000 watch, but installs second-rate toilets. He is very successful so I gave him all our money." If that is your approach, PM me your number any time you need home improvement work done.
How about the vendor that spends every last dollar trying to make a better product, so they have nothing left over at the end and are barely still solvent? And the product does more and costs less?
Just thinking out loud here.
That was my exact experience with seeing a doctor.
I had a skin allergy a few years back. I initially visited a couple of clinics near my home, and they either couldn't diagnose my condition, or gave me medicine which didn't work.
I then visited a skin specialist, who took one look at me, showed me a bunch of PowerPoint slides about hives, and gave me a container of pills which quickly and managed to solve my skin allergy issue.
Sure, the skin specialist charged way more than the other family doctors, and the medicine he gave likely didn't cost very much, but it worked. In the end, I was effectively paying for the specialist's expertise in knowing how to diagnose my condition and what medicine to dispense to best treat my problem.
What use is cheaper medicine if it still doesn't give me what I need? What use is visiting a doctor with cheaper rates if he can't solve my problem?
Same corollary here. I pay Apple for their expertise in being able to integrate their hardware, software and services in a manner which affords me that unique user experience which only Apple can give.
The things I do with my iPhone can't be replicated with 2 or even 3 android smartphones, so it doesn't matter how cheap the competition is. I am still not getting them, because they don't give me more of what I want (which is an integrated computing solution which "just works" right out of the box.