Apple went from a garage in the 1970's to the largest corporation of all time in stock market value, beating Exxon/Mobil and IBM, based on two simple ideas. The first didn't work so well; the second was a huge success.
1. Americans have more money than good sense. During the '80s and '90s Apple produced overpriced computers whose target market was people who didn't want to know anything about computers. They wanted an appliance that didn't challenge them, and were willing to overpay for it. Apple's competition was Microsoft programmers. Apple captured well under 10% of the desktop and laptop computer markets.
2. Engineers are crappy programmers. During the 2000s, Apple had phenomenal success with the iPhone, a next generation handheld computer. It succeeded because the competition was Asian hardware engineers, who designed crappy user interfaces. Apple's graphic user interface was beautiful by comparison. As the industry matured, Apple got stronger competition from Android handhelds whose user interface was designed by programmers rather than engineers. Android was late to market, making it look like a me-too iPhone knockoff. This is opposite the situation in the '80s, when Windows looked like a Macintosh imitator. The desktop race was won by value rather than an early start. I predict handhelds will follow the same pattern. Apple will refuse to relinquish its high profit margin and end up as a niche player selling expensive machines.
IBM showed the key to success in a mature market is selling services, not hardware. Apple needs to find a marketable service. Its recent foray into selling "cable TV" delivered via internet may turn out to be a brilliant move. Competition in that arena is the entertainment industry's well-known intransigence. It prefers to outsource technology to monopolistic partners beginning with Technicolor, now with cable companies. Apple could hit a home run if it became the next "trusted partner" of the entertainment industry. Microsoft tried and failed. Netflix slowed down after an auspicious start. Steve Jobs became a Pixar insider because he understood the game. We will see whether Tim Cook can hold Apple's lead. I wouldn't bet on it.