This has always been a "problem" for Apple. And argument against their business model. That they were able time and time again prove to work. Because of the pro

This has always been a "problem" for Apple. And argument against their business model. That they were able time and time again prove to work. Because of the product/service/overall experience superiority to any and all competitors. You have 1000s of PC manufacturers and still Mac is better. Because they don't just assemble parts. They understand that the money in this business is in value added stuff, like user interface, like looks, like service, like uncompromising quality. Others seem to think that what they sell is just all about assembling together great hardware. Apple understands that there is more to it. That's where their value has always been and I don't think that this changed a bit with Samsung introducing S3 to the market. Samsung (and other smartphone manufacturers) is just an assembly plant. They may have better hardware in their smartphones, true. The same way you can build a "better" PC with better hardware than Mac Pro. The problem with this approach is that there is so much more to building great product than assembling parts. Customer service, software, user interface, looks, etc, etc. That's why S3 with better hardware in it sucks comapred to iPhone. Even though iPhone has smaller screen. The same way a PC with better hardware running on Win8 is worse than Mac Os X. Again BMW is more profitable than Toyota. And Porsche is more profitable than BMW. Porsche makes on average $20k on each and every car sake they make in Europe. GM in Europe has a loss of nearly $2k on each car they sell. You tell me GM business model is somehow better? S3 is a commodity compared to iPhone and that's Samsung's problem not Apple's.