You're right. The way to tell is how much difficulty you are having in explaining how the whole line-up/hierarchy works.
I think it goes against one of the Apple-y things that I quite like. Make something people like enough to pay for. Don't build a product based on cross subsidies, non-transparent pricing, customer lock-in (not sure about this one), etc. That concept (I think) keeps Apple grounded. If they can make something that users are willing to pay enough for to make Apple a profit, they make money. If they can't they don't.
I think it goes against one of the Apple-y things that I quite like. Make something people like enough to pay for. Don't build a product based on cross subsidies, non-transparent pricing, customer lock-in (not sure about this one), etc. That concept (I think) keeps Apple grounded. If they can make something that users are willing to pay enough for to make Apple a profit, they make money. If they can't they don't.