Re: History says otherwise
Apple makes more profit selling desktops/laptops than anyone else in the world, so that strategy seems to have gone pretty well for them even if they don't dominate in market share, despite still selling at premium prices. Yes, they almost went bankrupt, but that was due to utter mismanagement that had nothing to do with their pricing scheme. When Jobs came back and rescued them, he binned their lower cost models and back to the premium price model they'd started to abandon, and increased Mac sales.
I do agree that Apple will lose more than 0.5% market share, because IDC seems to not understand the difference between the "smartphone" market and the "mobile" market, and how the two will be one in the same by 2018. All the feature phones that exist today will be smartphones in 2018. Maybe running Android, maybe running something else. Apple will sell 0% to the $50 smartphone market. What it'll amount to is that Apple's "smartphone" market share in 2018 will be about the same as today's mobile market share, with perhaps a bit of growth (because they do keep growing their phone sales every year, just not at the crazy rates they were growing them a few years ago) So maybe 10% market share in 2018.
Their prediction for a gentle fall in the ASP of Android phones is laughable, and will only happen if Android is completely muscled out of the feature phone replacement market by Firefox, Ubuntu or Tizen. If Android claims most of that market, having the size of their market doubled by devices which all sell for well under $100, along with more price competition and "good enough" specs in the midrange will cut Android's ASP at least in half by 2018. Android will dominate in market share but the OEMs (except maybe for Samsung) will all be fighting to stay in the black.