> Apple can stop selling hardware and continue selling service
For a few more years until their former customers move on to competitor's walled garden and become their customers.
> starve said governments of significant yearly iPhone + case purchase VAT
I can't believe any government seriously feeling the lack of VAT from iPhone sales. That's tiny, even for tiny countries in the EU.
Not to mention lack of iPhone sales don't equal lack of Smartphone sales, and grey markets would make an already pricy product even pricier and less desirable because of lack of support, warranty etc.
Other brands will sell, and VAT will be collected.