Did it fail?
Personally i don't think so.
Apples image has changed in my opinion as well as in the opinions of those around me. It used to have (not trying to insult anybody) an image of people who wanted to work with computers but couldn't quite figure out how one worked, the type of people who bought a VCR but couldn't figure out it's remote.
Partial to the switch campain, partial to OSX this image has changed to an image of users who use a well build well thought of system.
But what does puzzle me, is a lot of folks are really fanatical on the subject of marketshare. I doubt that Apple would bennifit from a big marketshare.
To make this point more clear, my ISP used to be small and tech-minded, not a big fancy quick helpdesk, most problems were solved in the newsgroups. If a used had a problem, everything was solved in a personal and a friendly way. But in time, my ISP descided it should offer DSL to the masses, and now the friendly newsgroup is filled with trolls, and complaining teenagers about f**cking ISP and s**t service, and they have lost their mojo so to speak in order to grow.
I strongly believe that attrackting masses isn't always the key to survival, but it's just my opinion.
And as a note on the side, sorry about the spelling, but I'm not a native speaker and I haven't got a spell-check handy.