However, this strategy is used in conjunction with a larger marketing strategy to build a rabid fan base that gobbles up product at a premium.

The Utility Dilemma:
Apple’s approach doesn’t maximize long-run market efficiencies, however, it’s “worth the money” to the fans.

I always just assume a competitor will take Apple’s lead and bring to market a similar product with a more economically efficient business model.

In Apple’s Defense:

In the long-run, the needs of the shareholder and the consumer are usually at odds.

JMK: In the long run, we’ll all be dead.