Apple has cannibalized the profits of the entire cell phone industry in just three years
To put this industry mauling in perspective, we'd just say that Nokia, Samsung and LG - the top three cell phone manufacturers worldwide - have managed to squeeze 32% of the roughly $6 billion operating profits up for grabs in this industry combined.
Manufacturers are getting the lesson that it is the vertically integrated service that Apple offers, which brings the most profits, not hardware specs. It makes the iPhone experience an extremely high barrier to entry, and one that is very hard to replicate. Companies are trying to come up with their own solutions, mainly based on Android, but it will take time to catch up, and encroach on Apple's soul-crushing profit margins. Until then, Cupertino might operate in a vacuum, and, who knows, it might even move on to something else in a few year's time.