Re: "How about you spend that fat cash on making a better product "
I disagree. Apple is free to license tech from any of the other companies, they just have to pay the patent tariff like everybody else. If their R&D department does come up with something new, they can keep it to themselves and make that their case for best of breed.
Except all of that is based on the false assumption that Apple started by being the best of breed. Jobs never actually made money that way. He made money by being the coolest. The best example of that was the Mac vs. Windows guy commercials. The Mac dude was cool, the PC guy was a dweeb. The Mac dude always had a zippy zinger, the PC guy always fumbled his come back. Sure he let you believe the Mac was a technically superior product, but he never explicitly made that claim. He made other claims (mostly true) that cause you to think he made the argument that the product was technically superior, but not the actual technically superior claim. The problem at Apple is they have either forgotten that or never knew it, only Jobs did. And with him gone, so is their edge.