If I was in the market to compete with Apple in this form factor, I'd get off the pot and rock ASAP because at this rate, they're going to seal up a huge part of the market.
The only competition Apple has is from asian companies. In the short term (5 years) it is not a problem.
Since all of apple's gadgets are manufactured in asia, they do not have to do fuk all.
But in another 5 years all USA will be is a supplier of raw materials, any manufacturing capabilities will be lost.
Right now China is unpegging the yuan against the US dollar. Yuan will climb.
So raw materials will become cheaper while since they have a monopoly on manufacturing things thier profit will increase.
And then China can use their manufacturing capabilities just like Russia is using its oil supply on Europe. Except they will be a little more subtle

I have explained how things work in Asia, but because Americans are too arrogant, too naive etc. They do not understand.
They are playing softball when everyone is playing hardball.
One possible senario, "mysteriously" foxconn and what other outsourced firms that make apple stuff have massive labour problems.
Ohh noo they can not manufacture any apple products until this is settled.
Ohhh nooo soo sorry Sir Apple, we are doing what we can to solve the problem.
Ohhh nooo you know how it is in a 3rd world country, we are not as advanced as USA you know.
Yes Sir Yes Sir, it will be solved soon (after nothing has been made after 3 months), maybe even tomorrow.
Ohhh Soo sorry sir, I think we will have a break through next week, (six month period).
By this time, apple is only worth pennies on thedollar. Using secret proxies, foxconn and the outsourced firms have bought up all apple stock.
Now they do not need to do anything

Probably they will not do above senario, but something more devious

A good book to read

Bright-Sided - How the Relentless Promotion of Positive Thinking Has Undermined America 2009