Just among my group of friends I've seen Apple lose sale after sale to long-time Windows users because Apple does not make a model they want. They want a mid-range machine which can be upgraded properly like a normal tower. Or, they want a small yet powerful portable (they need a proper 3D chipset).

Just one example: One friend buys a new laptop for his personal and business use every single year (well, his business buys him whichever new laptop he wants). He's been looking at Mac laptops since the day they introduced Windows compatibility. He goes to the Apple store, he fondles the machines, he loves the designs, he wants to run the Mac OS for most things and wants to run Windows for some important business applications (CAD). Each time he leaves the Apple store without a Mac laptop. Why? Simply because he, like many others, wants a powerful laptop in the 12" - 14" range. The 15" MacBook Pro is just too big for all the lugging around he does. When he wants a bigger screen, he'll plug one in.

Apple NEEDS competition, if only to force Apple to fill the glaring gaps in their product lines. Competition is a good thing, and if it existed it would most likely mean a broader Apple line as well.