I saw the introduction of the iPad mini. It makes clear to me that Apple remains committed to two things: building really good devices and grabbing all the profits.
As to the first, we've seen since the first iPad and a little before, a growing capability for high-end engineering coupled with highly advanced manufacturing processes. They today introduced a new iPad4, a new Mac mini, a new MacBook Pro 13 Retina Display, and a new iMac. Each one pushes the limits of design and manufacturing capability. The iMac tapers to a ridiculously small edge. Tolerances are tiny. They are cutting portions of millimeters.
We're seeing in this connection of design and manufacturing a flowering of Steve Jobs' vision. They control so much of their supply chain, they can push suppliers to make consumer devices - and these are consumer devices - that substantially exceed what we imagined could be made only a few years ago. Note that Apple took the time to show the innards of each device to make the point that each little piece was specifically designed and then process-engineered so the thing can be made in bulk to a very high tolerance. The new iMacs will be individually calibrated before they leave the line.
As to the second, look at the pricing. It starts at $329 for the iPad mini. People might imagine they'd sell more at $299 or maybe even less but Apple is constrained by the ability to make enough not by demand. I'd love a cheaper mini, btw. They announced they've sold 100 million iPads in 2 years. They sell more iPads a quarter than other PC companies sell of their entire line of devices.
But the point is profit. They don't care if you - or I - wants a $199 great freaking iPad. They can't make money at $199. (And Amazon isn't either; they count on selling stuff to subsidize the hardware. Google can't be making money at $199 without other revenue either.) Apple makes in profit in a day what Amazon reports as profit for a quarter. And you can't say Apple is skimping on investment.
Apple is letting other companies sell the $199 tablets. There isn't enough profit at that level for them. Maybe in the long run the method of selling content to pay for hardware is better. But as of now, the profit is all Apple's.