The Mac's pricing was the work of idiots. Selling a zillion widgets with a 10-20% profit margin works, as the WallMart model shows. The fact of life is that you will only ever sell a few of your widgets when the markup is 100% or more. Apple's directors were greedy and out of touch with reality.

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I agree that high margins hurt Apple, but that is mostly because it is hard to attract a broad range of developers if their potential market is small. And if you don't have the software, you can't get many users on board. In industries where you don't have that symbiotic relationship between vendors, it would be perfectly acceptable to have a high margin and low volume product. After all, businessess really only need profitability to survive.