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Correct, it is also important to recognize that they could have exploited their user base (500 million iPhones sold) to serve ads or collect data and sell it - that is a real business expansion idea. "They don't need to make money as a hardware company" sidesteps the investor-company relationship: Public companies are obligated to expand under investor pressure, but the strategy is always in the hands of the executives. Apple didn't succumb under the pressure.