It's #1 in the market it cares about, which is "people who spend money". And that doesn't appear to be changing anytime soon.
They are basically repeating the same mistakes Jobs made two decades ago which led to the almost bankruptcy of Apple. Granted, they have enough money in the bank to be safe from this, but this kind of behavior is simply accelerating the decay of their market share, and as a consequence of that, of their profits.
That sounds like hubris and arrogance to me. Are you so sure that won't be changing anytime soon?