I like my iPod Nano for one reason, a reason unrelated to it -- the RF remote controller from Scosche mounts perfectly behind the steering wheel in my Cadillac. My iPod is tucked away behind the ashtray, out of sight and out of mind. I can enjoy the look of zebrano wood without an open ash tray (and an iPod with ugly wires sticking out of it) mucking up the aesthetics.
Some electronics, like automobiles, are luxury goods. They offer a more pleasing experience and cost more as a result -- you can get anywhere in a Sentra but a Q45 goes about it in a more pleasant manner. That's where Apple is today.
Back when Apple tried to compete on performance and technology alone (the ugly Powerbook 3400 I owned more than a decade ago was once the world's fastest notebook), the company nearly sank. In 1996, Apple's CEO looked to Sun, HP, and IBM to buy and save the company.
BusinessWeek even called it "the fall of an American icon."
http://www.businessweek.com/1996/06/b34611.htm
Am I jogging anyone's memory?
In 1996, a low-end to mid-level desktop computer was about $1500 and it was usually in the family room or den, shared by everyone. Consumer technology wasn't quite as widespread and no one [aside from tech journalists and geeks] was thinking about where all of this was going, so most people forget that this computer company, named after a fruit, almost disappeared just a few years ago, which makes its position today quite remarkable. As far as the general public is concerned, Apple was founded around 1998 by some douchebag in a black turtleneck.
The automotive equivalent:
Imagine a small operation like Suzuki, Lotus, or Saab becoming one of the most profitable automakers in the world in just over a decade. That's insane. That takes creativity, timing, disciplined management, and a whole heap of luck. I'd put Apple's rapid ascension up there with Wal-Mart in the 1970s and Toyota in the 1990s.
[Still, I'm a Thinkpad fan for life.]