I think it does indeed apply to component level, when that component is so user visible. There aren't competitors in this space yet; it's "buy it from them", or

I think it does indeed apply to component level, when that component is so user visible. There aren't competitors in this space yet; it's "buy it from them", or don't have it. They aren't selling a luxury good based on a brand (but that is otherwise indistinguishable from their competitors); they have a monopoly. Again, I think it's...rather a lot of hubris to assume that a company is doing the less profitable thing (and it is an assumption, since none of us have better data than they do). That said, sure, we can speculate there may be other factors at play.