If Apple is indeed a HARDWARE company, and they lock their OS to their hardware only, then they need to satisfy all ends of the hardware market and start making some kick-@ss hardware to fill the GAPING HOLES left in their product lines - such as in the pro-sumer/mini tower area, and the enterprise area.
No company can be all things to all people. IBM learned this the hard way and finally did the smart thing by exiting the PC business. They simply do not serve the PC market as well as they serve the Midrange server and other enterprise markets. My brother was managing a portfolio of entry level UNIX server products at IBM... they were consistently clobbered by products that were $2k cheaper with more bang for the buck... which is critical in the enterprise environment.
Apple's core competency is not in the pro-sumer/mini-tower arena... and I don't know who started spreading this delusion around that Apple should be there, but now every third forum denizen is repeating it ad nauseum. It's a bit more complicated than saying, "My god, Apple doesn't make computers for everyone but they should."
No, Apple's core competency is in two key areas... Affluent consumer demographics where the key uses are: word processing, email, internet browsing PLUS digital appliance integration (i.e. A/V toys); and high-cost, high tech industries like biomedical, music, and motion pictures. Both of these target markets have something in common... cost is not the deal breaker in their purchasing decision.
That is where Apple wants to be, so be it. For the size of their company they make a tremendous amount of money serving this niche. As Nicholas Hayek discovered when he resurrected the tattered Omega brand that was diluted by too many models spanning too broad a price range trying to serve too many needs, consolidation and focused target marketing is key to proportional success. Apple is a lot more successful (read: ZERO DEBT) than Microsoft could ever be at THIS small a scale... Why?
Culture. Microsoft has none. Apple has it in spades.
Apple has culture. Large corporations looking for bottom dollar and people looking for "affordable towers" don't care about culture. Yuppies and midsize corporations with deep pockets and a sense of aesthetics and industrial design (hint hint... prepress graphics) do. The family earning $350,000 can justify the purchase no problem... The question isn't cost... The question is if the computer goes well with their $12,000 Natuzzi sectional sofa. The multimedia industry that has deadlines yesterday and labor prices in the stratosphere can afford an eight core Mac Pro with 8 gigs of RAM and terabytes of RAID storage (and probably use every bit of it), no problem.
Not surprisingly, Apple Stores are strategically placed in the most affluent districts of major MSA's. Willow Bend in Plano is one of three Dallas area stores... Plano has a median household income of $100,000 and residents such as cyclist Lance Armstrong and gymnast Nastia Liukin. Tokyo's Ginza district has some of the most expensive real estate in the world... it was packed to the brim with Apple fanatics when Leopard premiered.
To compete with Microsoft is to aspire to be the Wal-Mart of the computer industry... success by volume, not imagination. Where the hell is the fun in that? Anyone can hit a bullseye eventually if they keep throwing darts at a wall to see what sticks. It takes real skill to hit the bullseye on one throw. That's brand power you can't ignore.
Another problem is this notion that Microsoft is Apple's main competitor. They aren't. Apple is a hardware company, and they are the third largest computer manufacturer by volume now... behind only Dell and HP. At their rate of growth, three times the industry average, they could very welll become the market leader in 5-10 years. That is a significant achievement for a company once on the brink of extinction.
Now, yes in Steve Jobs' eyes, Microsoft is the competition. But let's not get ahead of ourselves. To seep into the public conscience Apple needs a footing. They're doing this systematically in a way that never occurred to Microsoft. Gates' genius idea was to make people need his product. But you can't get people to like you if they need you... eventually they come to resent you. You get people to like you by making them WANT you. Apple peppers the market with devices that people want.... people latch on, get a taste of the Apple experience. This brings them in to the Apple store and lo and behold what do they see? Apple computers all shiny, new and ALL of them turned on and connected to the internet with tons of apps to try out and no one waiting to kick you out of the store for loitering on macrumors for five hours.
For Microsoft, the money is in the software... BECAUSE ITS ALL THEY'VE GOT. For Apple, the money is in the hardware.... The software they make simply so they, not someone else, control the quality of the user experience. And what a user experience it is!
It still comes down to making a cool product because there are plenty of proprietary solutions that end up sucking wind in the market.... Sony made several of them. Perhaps you remember a few?
Apple's footing against Microsoft is gained by playing in an arena Microsoft can't seem to grasp... Hardware. Once they become the dominant market player against Dell and HP, toppling Microsoft in the consumer space will be relatively easy... ridiculously easy if Apple maintains fiscal conservancy and sustainable growth (read: ZERO DEBT) and it will from there be a much simpler venture if Apple chooses at THAT time to get into the enterprise PC market full-scale. I still don't think they should, and that goes back to the piss poor margins on volume orders with large businesses who only care about getting the minimum equipment at the cheapest price. Let me tell you about how stingy my multimillion dollar company is that will recycle every drive-melting HP laptop they've got no matter how much it costs in the short term because in their imagination this is a better investment than a computer that lasts five to ten years. (and maybe there are tax advantages to quickly depreciating products that we haven't considered here...)
To summarize... Apple does not need to be all things to all people. And every company that tries to be all things to all people ends up being some things to all people half of the time.
Apple's formula for fiscal success is simply this:
Be everything to some of the people all of the time.