We believe Apple holds a dominant position at the forefront of the consumer electronics industry, focusing on a premium ecosystem of tightly integrated hardware, software, and services. We see the flagship iPhone as the linchpin of this ecosystem, from which Apple derives pricing power, switching costs, and a network effect. In our view, every other Apple device and service derives its greatest value from further locking in customers to this walled garden. This approach earns the firm Morningstar Economic Moat Rating of wide.