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Apple looks for market segments where they can sell things at high margins, and abandons the segments where those margins are no longer sustainable.

Dell laptops start at about $400. The MacBook starts at about $1000. If you only want to spend $400 on a laptop, Apple doesn’t want your money. If you want to spend $400 on an MP3 player, on the other hand, you can get a very nice iPod.

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