Re: Great article, for 1-2 years ago!
"... and WHY that might fail in the future."
This is an easy one: There's nothing extraordinary offered for the high price.
Every feature iphone now has, including slick UI, will be incorporated in a $100 model and even brand following has its limits: $600 phone won't sell if it doesn't have anything the 1/6 priced phone has.
Not imagination either, that's exactly what happened to Nokia when they started to re-release old stuff in different package again, again and again: Nothing actually new but premium prices led to falling sales globally.
Management problem, all the way, basically. And Apple is obviously in similar limbo now: CEO can't decide and/or has no visions of what next.
Apple without visionaries is quite dead, internally. With their pile of cash they may run a long time as company, but that's only a shell. Just like Nokia did, almost 10 years, until Elop butchered it.