According to Wikipedia, Apple has 34k employees. Microsoft has over 100k. Maybe at that scale, 34k and 100k aren't very different, or maybe that's like night and day.
Yes, and how many work in their retail stores (not sure if that's included). Every Apple store I've been to seems to have a 1:1 customer to employee ratio.
They should slash the product line. They won't because of the lock-in loops. If they cease to offer one product line, the lock-in loop where it participates gets broken.