According to Scott Galloway from DLD in his presentation The 4 Horsemen, the further down the torso you go the greater the margins. In his win/loose analysis of who will ultimately drive the direction of commerce and internet between the big 4 – Amazon/Apple/Facebook/Google.
Go to 13:15 mins in the video and see how Apple is the only one to reach the three ways to appeal to anyone to purchase your product or service. . . Scott Galloway humouriously explains how you want to be in the luxury business!
Then when you have a spare 15 mins or need a break watch the complete video. It is very interesting.