It's funny...
Apple's innovation is, I think, their pursuit of perfection in the interface of people and technology -- pretty much what Arn was getting at. I'm kind of disappointed, I should add, as I always thought that Arn was a highly advanced AI currently living on an Xserve cluster that became obsessed with Macs.
But all you have to say is, Apple makes the most enjoyable computer to use. They make the most enjoyable music player to use. And likely, they will make the most enjoyable phone to use.
And whenever anybody says Apple only has 5% of the market, all you have to say is, they are one of the top few computer manufacturers in terms of units sold, and their computing division is HIGHLY profitable, generating a few hundred million in net profit each quarter these days! How is that not successful?