The way to beat Apple is to focus on design rather than technology narrowly...
Most people want a well-designed device that will serve their purposes with little hassle. But since most people's purposes revolve around office applications, web-browsing, DVD watching, and occasionally light editing, considerations of implementation and design gain importance once the underlying technology is good enough.
But since the underlying technology is now good enough, most folks prioritize:
a) A bright and sharp screen
b) A large trackpad
d) Reasonable portability (not least of all a small charger), and good build quality
e) An OS that will cause little hassle, does not involve a tangle of third party drivers, and does not seem to grind to a halt in two years (even if non-OS software is really to blame).
f) Some kind of walk-in support and (perhaps) a light gaming capability.
g) Aesthetics
Now, if you look at available devices with these factors in mind, the success of Apple is hardly surprising since there are few alternatives, and they tend to be lost amid the plethora of those that do not meet the said criteria. Moreover, paying the 'Apple Tax' need not be a bad deal if the device is still able to serve these ends four or five years later. As a result, if competitors want to take on Apple, they should be thinking more carefully about design and implementation, rather than narrowly technical considerations.