Apple is acknowledging that the competition is every bit as good as, if not better, than any of their offerings. And they're right. They stopped innovating right around the first Iphone. Now, rather than create market trends, they follow and react to them. Stale OS; hardware that can't keep up with the times; they simply can't keep up. The only thing keeping them in the lead is their Marketing department.
I actually had a co-worker adamantly trying to convince me that his IPhone4S had 4G (LTE) because his was a 4g (4th generation) phone. Another one was trying to show off his "navigation" app by reading directions to me from his IPhone4S, EVEN WHILE GOOGLE NAV WAS ALREADY SPOUTING OFF DIRECTIONS ON MY PHONE! He couldn't fathom that what was happening on each phone was completely different. And when I told my phone to navigate us to our hotel, the other coworker in the car couldn't fathom I had anything other than an iphone with Siri. Folks, that's the power of marketing on the stupid masses, and that's all Apple does well any more, hence their sales numbers.