Good article Chris, well written and presented – but you state something that has been discussed widely for some time by equity analysts, product marketing strategists and tax consultants. Apple has been identified as a luxury product company for a long time now. It’s design, pricing and marketing strategy as allowed to migrate value from tech (AppleIIe) to consumer electronics (iPod) to luxury product (iPhone). The definition is basically driven by the fact that Apple produces a product that is not superior technologically to the competition (perhaps inferior) but commands a premium price. Apple should not be benchmarked against Samsung, or any other phone manufacturer – its closest benchmark is Louis Vuitton. This has implications for its stock price, customer retention and growth strategy and transfer pricing approach. As this shift has taken place from tech company (who designed and built their own hardware), to consumer products (made in China but designed in Cupertino) to finally global marketing giant (brand management and IP licensing) Silicon Valley has been left behind because the perspective is pre-Copernican. (The world doesn’t revolve about the Valley). Nice to see the realisation sink in.