Yeah this. Apple already has fairly-successful and well-established price levels, they are not going to drop them anytime soon. If these chips really are significantly cheaper to make, that just means they will make more money per chip, at least until setup costs go to zero. Cook is a supply-chain guy, he knows the score: final price is what the market will bear, not some fixed calculation over costs; you win by squeezing costs down and pushing prices up at the same time any time you can.