(I think) it's not hard to understand where microsoft went wrong. Ballmer just doesn't seem to get where the industry is going. As evidence, this quote from the article: Indeed, Ballmer seemed to have no intention of leaving when he announced a massive reorganization of the entire company in July 2013. Behind the scenes he had also begun negotiating an acquisition that was meant to transform Microsoft. He had become…
How is Apple differentiated? To a user that wants a smartphone to send emails, visit websites, play fantasy football, take pictures, etc, Apple is every bit in competition with Xiaomi as Samsung is. To many, many users, smartphones are effectively a commodity now.
Which is why Apple devices feature some of the best screens, the best cameras, the best processors. Any illusions that Apple isn't fighting the competitive fight, and hard, is just contrived nonsense. They are fighting damn hard to make a compelling case for their devices, and doing a good job at it.
whereas Apple doesn't need (or want!) the bottom
Apple still makes and sells the iPhone 4S, a three year old device. You can get this in the $200-ish range. Further most of Apple's pricing has been contingent upon the scam that are cell phone contracts, where right now you can get the iPhone 5, for instance, for "$0". That is, by most definitions, the "low end".