"The money from services far outweighs the money from the sale of the hardware, in the long run for most types of users on most devices."

I believe that this is true for the USA market but not true for many markets worldwide. From the perspective of the developing world (containing most of the users and most of the devices, but not most of the revenue), the market is very different, much less relevance of iOS/Apple Store, much higher preference for free apps instead of service subscriptions, etc.