“Apple is in trouble as their business model is based upon the fact that people will pay 80%-100% premiums for phones and tablets. What happens when the competition is better?”
Perhaps you oversimplify their biz model.
Not at all. Compare the specs of the iPhone 5s versus the Samsung Galaxy S4:
http://www.phonearena.com/phones/compare/Samsung-Galaxy-S4,Apple-iPhone-5/phones/7597,7378
Apple costs about $200 more and has fewer or lesser specs on nearly every level. Also look at the reviews from both the customers and the site. Again, no comparison.