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Ha!!, man, the end of that sentence made me laugh so hard...

"Intel, by integrating design and manufacturing, earned very large profit margins on its chips; Apple could leverage TSMC for manufacturing and keep that margin for itself and its customers."

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Have you seen the iPhone pricing strategy? Yes they’ve moved up asp for the high end but are also now selling a $400 phone with chips that outperform anything else in the Android market. It’s very likely some of this margin will be shifted to consumers

Apple’s pricing in the services world: extraordinarily competitive low end to lure you in. Excessively-margined high end halo products. High margin, but attractive in comparison middle tier.

Dropping the per/unit cost of CPUs by $200/ system would allow Apple to retain their margins while decreasing prices. Or (more likely) push performance at the same price.

Take a look at the "Low End" iPad and the iPhone SE. They are both excellent price/ performance devices with highly competitive processors.

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