An alternative view is that Apple’s biggest product puts enough compute in your pocket to make “cloud” unnecessary in a lot of cases. My phone is somewhere between a t3.medium and a t3.2xlarge (based on ram and cpu cores respectively). That can provide a lot of local compute for my wearables. And those wearables are gonna need network anyway, so either that all end up with 5G cellular radios (and 4/3G fallback) and enough battery to run that, or one device provides the network hub and the tiny things in your ears and the glasses sitting on your nose can have lower power radios and smaller batteries.
I reckon watches/glasses/earbuds(/cars/tvs/etc) all relying on a phone is a reasonably sensible model, rather than each of those devices having completely stand alone capabilities.
(And, the idea of Google tapping into my nervous system??? No thanks... I’ll proudly be a data center smashing neo-Luddite before that happens to me...)