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Apple remains profitable because of the sheer size of the computer industry that has grown up around them. Since business is primarily about relationships, and Apple has chosen to value the relationship with the end-user higher than their relationship with the distribution channel, this approach puts Apple at a competitive disadvantage. Apple has two problems. Not only is its sales and marketing structure less effective than it could be, but as it increases its success, it increases the burden on the support infrastructure that Apple provides for its users. At a time when even governments are outsourcing, Apple is providing ever more services directly to end-users...
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