I don't follow the computer wars closely anymore, but it seems to me that in this battle Apple has some big potential advantages:
Since they control the manufacturing they can make sure their machines are cool, advanced, and efficient (if they know what they're doing.) Microsoft is stuck with whatever other companies produce.
Since they are selling both hardware and software they can cut the price of one to make the overall package cheaper. Microsoft has to make it's money on the software licenses exclusively.
If Apple can make good hardware and software they could create a nice niche for themselves.
Microsoft is stuck with whatever other companies produce. 'tother way around, I suspect. I like PCs better than Macs, but mainly because most Macs are built in a way that makes it hard to expand them; few drive bays or card slots.
Also, Macs tend to be UGLEEE! The first time we saw an Imac, my wife and I, not knowing what it was, independently came to the conclusion that anything that stylishly ugly had to be French!
That said, Wife loves her beige G3, which she uses mainly for internet access.