How does this thesis fit with manufacturers of 'premium' products? 'Premium' being those products that indeed compete with other products but are perceived as s

How does this thesis fit with manufacturers of 'premium' products? 'Premium' being those products that indeed compete with other products but are perceived as somehow better by consumers. Tablets are a good example: Though Android has all the market share, iOS generates all the profit. Does Apple need a giant dose of competition? Looks to me like they have it and still keep raking in the profits.