Forget all the other products - much lower profit margin devices. So Apple lives and dies with the phone. Worse days coming. The only reason Apple gets the pricing on the phones is because it is a subsidized product. As the cash strapped consumer gets tired (wises up quite frankly) of pay $90.00 per month to Verizon and AT&T for simple talk, data, and internet - this game will end and the iphone will plummet in price.
A $500 billion market cap for a limited one trick pony. Much more downside over the next 3 years.