Comment by MBCook

But is he?

We don’t know. If having such a phone keeps someone in the Apple ecosystem that may be more valuable. All their services they’re always pitching. People with iPhones are more likely to buy iPads and Macs.

Maybe the get tired of the tiny screen or want a better camera and move up in a few years.

The value of a customer over a longer time horizon, perhaps 10 years, may be better if you let them buy the phone you make $250 on instead of $450.

He’s maximizing value for the quarter. That so often steers companies wrong.