The paradox: Apple is *not* actually competing
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.