If all Apple was selling was "smug", they would have gone out of business years ago, or at least had to cut WAY back on production. Smug only sells for a little while, if excellent design, quality manufacturing, and helpful support are not all there also.
Apple's business model is not built on smug, it's built on designing high-end quality products and supporting them. That's not likely to earn them majority marketshare, which belongs to the bottom-feeders and mid-range vendors, but it obviously earns them the majority of the profit.
Their success has nothing to do with "smug". As long as they continue to push the innovation curve and make good products for the high end of the market, they'll do fine.
Anybody remember that 1984 Superbowl commercial?