Lo said the industry had "seen this movie play several times", pointing to the Betamax vs. VHS video format war, Mac vs. Windows and various proprietary networking protocols that at one stage tried to compete with the now dominant TCP/IP. [emphasis added]
Mac vs. Windows is a silly comparison. Apple still makes a ton of money selling computers. It doesn't need to have Windows' market share to be successful; it just needs to keep customers happy and turn a profit. As long as the iPhone makes customers happy and turns a nice profit, Apple doesn't need to change its approach.
Even Betamax survived for a long time in certain markets. Sony didn't stop making Betamax equipment until 2001 or 2002.
I guess it depends on whether or not you define "success" as "market share" or "turning profit".