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Is Apple selling their hardware at a loss?

No, but I think the primary comparison is meant to be other major consoles (xbox, playstation, nintendo)

Sort of, maybe. I read it more as them assuring everyone that it's still a PC if a customer ends up wanting a plan B.

I know you are being rhetorical but for reference, of course not, their margin on hardware is 36%

Do we count socks and slings (Pocket™) as hardware?