(Again, this applies to every large tech company, not just apple)
Legal operations software, for example, is about a 1 billion market[0].
Your startup can compete in this space but it's too small to be worth pursing for Microsoft.
[0] https://www.globenewswire.com/news-release/2019/07/05/187891...
And they will only do so in a market that is core to them.
There are only handful of companies (Google and FB come to mind) that make products for Apple's platform that Apple can't easily replicate itself.
The advice is useful because if I’m building a feature I will either be purchased by a product or eventually be added into a product.
I think the risk is thinking you are a product company when actually a feature company and then not diversifying.
Spending $10M worth of resources on a project within Apple is not even notable, meanwhile that's a healthy series A for a startup.