Brilliant move on AAPL’s part. As an anomaly in the hardware business (30% operating margins compared to 5%  for Dell or 3% Motorola), this will really drive profits for AAPL.

Here’s how: the PC replacement cycle fostered by MS-Intel was essentially predicated on incrementally beefed-up hardware chasing ever-hungry software. In other words, users were browsing the web, watching video, doing email and IM all at the same time requiring replacing their PCs every couple of years. Voila, Apple just facilitated that on mobile phones - now iPhone users will use more apps at the same time, constantly driving demand for more powerful phones. Because they own the hardware business as well, AAPL will directly benefit from a multi-tasking OS, way more than GOOG will directly benefit from multi-tasking on Android.