To be fair, MS sort of decimated any other competition in the computer arena - almost got Apple, too. It's hard to not look innovative compared to MS. "Look, we made the Start Menu ROUND!"
Android similarly makes it very hard for the many manufacturers to differentiate themselves from the pack - they are all selling very similar devices. Few use anything custom inside, so competitors quickly emulate anything even remotely advantageous in the market.
And finally the ridiculous profit margin that Apple commands means that they can make their hardware $0.10 more expensive, but spend that handful of change in areas that the consumer will notice: slightly higher quality finishes or some purely decorative item. It makes their gear stand out.