A sustainable business with larger profit margins is usually better to have than one with smaller profit margins. Also, a business with clients who have deeper pockets is better than a business dealing with those who have less disposable income.

Apple didn't become the most valuable company in the world on a strategy of niches though. And they won't stay there if they go that way.

Apple vs Amazon models, both have their pros and cons.

Apple's strategy had them circling the drain for many years, with too little volume to build a decent supply chain and hit sane price points. They all but gave up on making open tools and moved down to crippled appliances, and even then I was honestly surprised they survived.

What you call "crippled appliances", other people call "things people want."