I'm not saying the MP is not earning a profit now, but that it's not going to stay that way in the not too distant future if the sales volume falls (which there's indicators that show this is actually possible).
I don't really think this matters... Apple's R&D costs on the Mac Pro are basically zero. The sales could drop by 3/4 and it wouldn't matter. The XServe is an entire different bag (of hurt?). If they were only selling 10k a year, they were probably losing money just keep a production line around. Meantime, the Mac Pro is probably easily selling a few hundred thousand units a year, if not more.
I've seen posts that would disagree with you (and I can attest to what 10.6.4 did with RAID... it wasn't pretty)...
But I was referring to OS X (10.6.4 & RAID, audio bug come to mind, each with a slow fix), firmware (fixed memory clock in the '09, as well as the optical drive issues with 3rd party drives in 2009/10 systems that still exists, and eSATA wouldn't work with all the firmware releases in the '09's), and drivers (some graphics issues IIRC).
This stuff happens across ALL Apple products. It's not at all a Pro specific thing. Apparently you missed the complaining when Apple screwed up the SATA on the Macbook Pros. Or when they put defective power supplies in the iMac G5s. Or when they broke dial up networking in 10.1. Or the Apple phone that won't make phone calls. This is more of an Apple in general thing.
This may be a non issue to you, but for someone that ran into one or more of these issues, it's a hassle (audio bug had a direct relation to system reliability due to the temps).
I've had to deal with the NVidia issues on my Mac Pro, but again, none of this points to Apple discontinuing the Mac Pro. These sorts of little-big annoying issues exist on all their lines.
For 2006 - 2008, they had a pricing structure that offered a better value than their PC counterparts (meaning workstations with the same Xeon CPUID's, and the rest as close as you could as exact parity is impossible to achieve).
Which was very unique and never happened back in the G5/G4/G3 days.
But this changed as of 2009, particularly with the base Quad (not as much of a price difference as you went to DP systems and/or increased the clock frequencies). The CPU's got cheaper, but the Quad's were ~$1k USD more than their equivalents from Dell and the like. Bugs are also taking longer to fix (i.e. audio bug that plagued the 2009's for nearly a year, and took 2x fixes to finally get right). The MP's not a consumer system afterall...
Prices adjusted back to where they used to be in the G3/G4/G5 days.
Again, I'm not going back very far to demonstrate the notable shift in focus as seen by the user (would be older internally, but it wasn't known until later when the changes were implemented).
If anything, the 2006 and 2008 Mac Pros were a very unique switch for Apple to low priced workstations. The current Mac Pro prices are inline with what the prices were on the G5's, and in line with other PC workstations, actually. There is absolutely nothing abnormal about the Mac Pro pricing.
The last time I can think of a Mac Pro tower that was targeted at consumer markets, and priced accordingly, was the first Power Mac G3. Ever since the iMac came out, Apple has never made low priced towers. And that was back in 1998. Again, nothing looks out of the ordinary about the Mac Pros...
(Edit: Ok, ok, I forgot about the time they tried the G4 Cube, which sold poorly. Historically, Apple makes their money in the workstation market in the high end, not the low end, further entrenching the Mac Pro. And remember when everyone complained the G4 cube was too expensive despite being cheaper than the Power Mac G4? Yeah, I'm seeing a pattern here. Apple making better sales on the high end of the market.)
There's new technology out now, and will be in the near future that's changing the market in ways that's not happened before.
Cloud computing is going to pick up steam, reducing the actual system performance needed on the consumer side. Bandwidth will still be an issue, as that's taking longer to get upgraded (limited availability for ISP tech like FiOS). Intel's indicated that prices will rise on the server parts as a result of market demands to implement cloud computing (increasing core counts per die - Haswell will have 8x cores per; but the pin counts are still increasing = larger parts, so fewer per wafer). But it's still a value due to the performance per system and lower operating costs (low power usage initiatives that result from the smaller manufacturing processes). Exactly what the large scale companies want.
Workstations will still be needed (still requires high performance, and cloud computing isn't viable due to bandwidth availability limitations or high costs if it is), but the larger parts and lower production rates are going to increase costs (not as many enthusiast parts to help use economy of scale as is possible now for SP/UP versions either, as gaming software wants out of the PC side from what I'm seeing).
Huh? Workstations will be the last to go because they will be the only kind of machines that can't be replaced. If anything, this gives Apple more of a reason to keep selling Mac Pro hardware.
Combine this increased cost per CPU with Apple's margins, the MSRP will rise. And it's not inconceivable that it will outstrip the independent pro's ability to purchase them in the not too distant future. There's software cost/usability evaluations to consider as well (i.e. the fact that other platforms may have additional features, such as true n core multi-threading implemented already or will before the OS X equivalents). So some may have to chose to jump ship due to cost or even usability issues (cost reasons are more likely IMO, but the usability factor can't be totally discounted either).
The MSRP on Apple's pro-line has been perfectly stable. The only fluctuation was when the prices dropped during the Intel switch.
To be perfectly honest, the only reason the 2006/2008 Mac Pros were so cheap compared to the G5's was probably because Apple had a back room deal with Intel. That's a special situation, not some market force. Prices are back in line with what they should be.
Apple honestly doesn't have huge margins on most the Mac Pros, and it doesn't look like they've been increasing their margins at all. Not sure where you're getting that from. Again, I think the only reason the prices jumped up on the 2009's was because they had a sweat heart deal with Intel. The 2006/2008 Mac Pro prices were so low, as to be abnormal. They were cheaper than custom building.
(Another thing to keep in mind, while a small number, all the XServe buyers will be moving to Mac Pros. If anything the cancelation of the XServe more solidly entrenches the Mac Pro.)