At one time Apple was the #1 PC maker too.
A lot of help that was.
(Almost all PC makers ran Windows, and compared to OS, the Mac was a tiny minority. )
Also, the reason Apple sells all the iPads it makes is because they cut back on production (see some past MR reports).
The Lifestyle ads are nice but they don't tell the VALUE you get.
Right now people look at what they get for the $, and they see some non-iPad tablets that seem to have most of the same or better features for HUNDRES of $ less then iPad.
It's The 90's Mac Sys 7 vs Windows all over again, but his time there is no Jobs to change the world again.
So what if Apple is not the #1 PC maker? It's not a contest.
If there was a contest... Apple would have been out of the game years ago. The Mac will never "beat" Windows.
But clearly the Mac has a market and people are buying them. Stores do not have to send back unsold Macs.
On the other hand... RIM, HP and Microsoft made tablets that NO ONE WANTED. And they had to get rid of them at a huge loss. That's a big problem for them.
Apple doesn't have to worry about unsold iPads. So what if Apple trims production once in a while? At least they know they can still sell them. Apple is one of the few companies that is in-tune with its supply.
I understand what you're saying. In the general sense... people are buying more cheap tablets than Apple iPads.
But my point is... the iPad is still a valid business... even if the other guys sell more.
And let's be honest... are those $70 tablets you mentioned earlier really a threat to Apple?