It’s also a bit misleading to frame the company on the decreasing margin of one product: because this hides the fact that the margins across the total company h

It’s also a bit misleading to frame the company on the decreasing margin of one product: because this hides the fact that the margins across the total company have actually increased. The smartphone market is saturated: if Apple don’t spend to differentiate (from others and their prior models) then there is no reason to upgrade and that is a lost sale. If sales and upgrades are the result of spending more on the device: that’s not a bad strategy - not every product should stagnate and race to the bottom. And as mentioned earlier, margins across the whole business are up: so there is clearly a positive balance in making the phones more compelling in order to secure those halo purchases.