Maybe they're preparing for the future. In a few years a $200 subsidized iPhone might be a high priced product compared to a free with contract Android phone. T

Maybe they're preparing for the future. In a few years a $200 subsidized iPhone might be a high priced product compared to a free with contract Android phone. The iPad at $499 might be a premium device compared to a <$200 netbook. The sales of traditional PCs will eventually start to drop as these other devices fill people's needs. We're probably near the high water mark for the Macintosh. Standalone iPods are already starting to seem old fashioned. How many more years can they rely on that market to exist? It doesn't seem the iTunes Store has ever been especially profitable for Apple either. They have to bet their future on the iPad/iPhone.