Who said anything about desktops? The ARM datacenter is being taken over by Nvidia's Grace and Vera CPU products. If Apple supported OpenBSD, Linux or Solaris, they could destroy Nvidia in CPU performance and kick Graviton and Ampere to the curb forever. But instead they've left the low hanging fruit as another trillion dollar market for Nvidia to eat up.
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Ah, big dreams, /s
they deliberately do not want to enter the server market. it is literally an entirely different thing than what they're doing right now. they can't do any of their vertical integration there, there's no moat for them.
like Tim Cook said (quoting Steve I believe) - it's about knowing how to say no 1000 times so that you can say yes to the right thing once, and then put your all into that