I have being reading all the news regarding new android handsets at CES. You can now buy a top performing phone for a fraction of the iPhone cost of ownership.
With the market forces changing so rapidly, can Apple continue its profit margin model. I am not so sure it can, as phone companies will start to push back. In all honesty, if Apple makes money on the AppStore does it need vast profits on the hardware.
With Google and Amazon fighting hard in the wings, Apple really has it work cut out. Of course, if it releases a start of the art, innovative phone that nobody can copy for 5 years, then it is relatively safe.