Steve Jobs brilliance was realizing that he could never truly compete with Microsoft in an OS Desktop war... he moved apple to a consumer electronics company more so than a personal computer market. (SONY should have done this... but never figured out the portable market pass the walk-man) With new versions of iPad, iPhone and iPod iOS 5 - you don't even need a mac (or windows pc) running iTunes - you don't need a pc to backup, store, etc.
Jobs understood the key to making his products great, was to commoditize (is that spelled right?) the competitions products. Make their stuff the cheap complements to his premium products. You pay $200 for an iPod Touch to buy $7 digital cds.
Also, Jobs had vision (something Microsoft has seriously lacked in years). He saw people were buying PC in record numbers to surf the web, listen to music (remember the napster craze?), and do their daily life activities like online banking, email,etc. Also, they were only using about 10% of the power in their hands because PCs was too much for them.
He created the iPod and iTunes products to go after digital music and now more people buy music online than in stores... visit the cd sections of your local wal-mart/target lately? Only seasonal and top 40 stuff remain and normally less than a whole aisle.
Next the iPod started doing video,photos, etc. The true game changer was the when the iPhone merged the most desired(and considered a necessity by the current generation) accessory - a cell phone - with industry leading iPhone.
Next, with iPad he finally made his laptop killer... and hence with the new iCloud service, you won't need a pc/laptop.
Remember, the dells and HPs sell more pcs in a week than apple sell in a year, but the PROFIT from a single iMac, iPod Touch or iPhone is way more than clones - this is why HP is getting out of the PC market.
Also, add in the service fees along with their % of apps and music sells, etc. and you see why they are one of the top 5 most valuable companies in the world.
Steve had the vision and willingness to make the decisions to invest and take risk. Also, he made sure he had the right people in the right place to grow the company.
People always want to understand the difference between management and leadership.
Management is making sure people are doing what they are hired to do. Leadership is making those people are doing the right things.
Jobs was a leader, not a manager.
R.I.P. Mr. Jobs