It's strange to me that you think Apple will become a "commodity" producer when it has the largest profit margins in the industry. Which is the exact opposite of how commodities function in economics. Yes Apple's focus is hardware as opposed to software, but there is commodity hardware and non-commodity hardware. Apple is firmly in the non-commodity camp and shows no signs of changing. Things like M2 chips are not "commodity".

I have no idea what Apple will do with LLM's. But Apple is already leveraging ML in things like built-in local dictation and OCR, and we can probably expect that it will leverage things like LLM's at the OS level (iOS/macOS) rather than focusing on their iWork suite. (Honestly at this point I don't understand Apple's strategic purpose with iWork, or even Final Cut Pro.)