Re: Isn't this exactly the way Blackberry crashed and burned?
Apple of the 1990s is why Apple no longer thinks it is safe to try to fence off one corner of one market.
Given that the company is very good at product launches, it has usually followed a strategy of expanding into neighbouring markets rather than expanding its range within a market. From computer to MP3 player, from MP3 player to phone, from phone to tablet. It probably helps that it's so bad at the other idea: witness the cheap Mac (starting at only US$599!) and the cheap iPhone (only US$99 on a contract!).
They'll probably be healthy with 10% of the high end of three markets. If they want to expand they'll find some other market to try to muscle into.