Daring Fireball: The Chair, article.
... But there are other things any competitor could copy, easily, but they seemingly don’t even understand that they should, because such things aren’t technical. Take that chair. The on-stage demos of the iPad aren’t conducted at a table or a lectern. They’re conducted sitting in an armchair. That conveys something about the feel of the iPad before its screen is even turned on. Comfortable, emotional, simple, elegant. How it feels is the entirety of the iPad’s appeal.
The competitors don't understand why they are having their butts kicked by Apple. They are baffled and pissed off and desperate.
They don't understand that Apple is not competing. Jobs has always said: for us it's not about beating the market, it's about making the best machines we can.
A competitive mind can only think in things that can be measured. And when a device wins the market on things which can't be measured, they are stymied and flummoxed.