Paul Nixon has created a great bit of information design describing Apple’s product development/market strategy. The Mac mini and iPod Shuffle in the sweet spot of the mass market.
The “Halo Effect” is something well used in the fashion industry. High fashion nonsense filtering down into mainstream styles. Companies like Armani make far more money from their Jeans ranges than the top end of town. The difference being that in the fashion world, most of the high end stuff on the catwalk is unwearable and ridiculous whereas the Apple products are just, well, even better.
Thanks to Knotty for the link.