It's the cycle that kills Apple's competitors in the consumer market: 1) Apple sells millions of a brand new device, 2) this allows Apple to order millions of c

It's the cycle that kills Apple's competitors in the consumer market: 1) Apple sells millions of a brand new device, 2) this allows Apple to order millions of components, 3) cheap components drive down Apple's costs, 4) Apple can then lower the product's price but still retain a high margin, 5) Apple sells millions more because the feature & price one-two punch is too much to overcome.