You have to give Apple some credit. The company was on the brink of total failure and it made a come back with the iPod. Microsoft has been behind the times for awhile. While they still produce some nice products (Windows 7) they have been losing steam for a long time.
Remember when Microsoft was on top of the world? everyone hated them. I think the same will happen to Apple. In fact, it's already starting to happen to Google.
Competition is a good thing, and Apple is forcing Microsoft ( and lots of other companies) to reinvent themselves in order to compete. The only Apple product I own is an Iphone, but I realize they have created some great products. Yes they are overpriced as hell, but people would not buy them if they were shit. I have always hated the lock-down mentality of their products, but from an aesthetics and UI perspective, they simply make some amazing products.