It does but its also very expensive to get. For an M1 Ultra you need a $4000 Mac and it comes with a measly 64GB RAM and 1TB SSD and a binned 48 core GPU.
[Going on a tangent]
The 7950X is $699 and say a RX 7800 is $899 and the rest of the system is $1500, so total = $3,100.
Ultra (20 cores) 23K / 20 == 1,150
7950X (16 cores) 24K / 16 == 1,500
13900K ( 24 cores ) 24/ 24 == 1,000
So this begs the question, why is Apple soldering everything in their desktop Macs and what's the point of removing 32bit support when AMD showed its possible to still get great pref while maintaining backwards compatibility.
But these + a dGPU + required thermal systems would not fit in a Studio. Or Mac Laptop .
Apple isn't treating the desktop substantially different than the laptops. 75+% of what Apple sales is laptops. So why would the desktops be driving the overall SoC design. That is the 'answer' to the question. Look at the desktop enclosures Apple has rolled out since October 2020 and see if they match the 7960X thermals envelope or not.
Apple has less than a 10% overall market share. So that puts desktops down in the less than 2.5% range. Skim out the basic Mini and iMac 24" (which are certainly good enough systems for average folks) and probably down to less than 1.5% . So does it make any financial sense at all for Apple to develop a mid range desktop SoC for such price point (600-800) range. [ In contrast to the overall PC market where 90% * 25% ( non apple , desktop) share is 2x the size of the whole Mac market ( 22.5% ). AMD and Intel can split that in half and still sell more SoC that Apple is in total. For them to spend the R&D to cover that isn't a big question.
Apple needs to update the Mac Studio with faster CPU and GPU. It's already outdated as AMD's CPU has a very high ST and perf per watt is great too.
Studio order are backlogged months. The "needs to" is well motivated. Even if sales cool off they'll still be selling every Studio they make. That isn't a "problem".
Can to Studio last 1.5 years on the market without an update? Probably not. Could it run until June 2023 without an update without incurring major sales issues? Sure.
It would be more than loopy looney toons for Apple to sync up their whole desktop SoC development schedule to AMD and Intel dog and pony shows. They should work on stuff and release stuff when it is ready. Same thing for Intel and AMD .. try to synch up their laptop SoC product introductions to Apple's . That is nuts.
One reason that AMD's dog and pony show is this week and the CPUs ship at the end September is that they have substantive BIOS bugs that are still being worked out. When companies get so caught up in "one upping" their competitors dog and pony show as opposed to just doing their product well, then it typically leads to more crufty , buggy products.
Apple's far , far , far bigger problem than the Mac Studio is the gap they are leaving on the Mac Pro level. The lower 'half' of the Mac Pro 2019 is going to get whipped by these systems ( especially if attach heavyweight cooling systems to it and the dGPUs. ) . The Threadripper WX5000 Pro is doling out a beat down at the "upper half" of the 2019 line up. That is only going to get worse as the the RX 7000 and RTX 4000 series roll out over next two Quarters. (and that is with Zen 3 cores on the WX5000 . They are essentially holding in reserve a WX7000 they they could drop at any time if really need to "answer" anyone's encroaching on their performance. That can make fatter profits allocating those chiplets to Epyc products, but can respond when they want too. )
The Studio doesn't have a huge problem. It delivers decent band-for-buck for what it is. The very high ST 'problem' is more an issues for the folks in these tech forums who get all wrapped up in "who is fastest" contests (and tech 'news' sites that need to generate excitement to drive ads views ) . The Ultra is plenty fast enough to get real work done for real clients.