Theoretically it would be possible to compete with Apple because their price position makes them vulnerable (high margins). A competitor offering an equivalent product could undercut them and come out on top. This is textbook from an investment point of view.
This was all said in the article I think but I'm just trying to rephrase it.
But yes, as Microsoft demonstrates competition in this sector doesn't always go by the book. Because it really isn't such a free market with non-captive consumers.