Samsung's Android ecosystem is way larger than Apple's iPhone ecosystem. The iPhone 5 is 3 months late and the screen is still 4 inch. The competition's 4.5 inch phones, 7 inch tablets and smart LED TV are selling like crazy now.
Apple should move forward the release date of the iPhone 5 with 4 inch screen. Does that mean Apple will be stuck with iPhone 5 and 5s with 4 inch screens for 2 years, during which the competition's 4.5 and 4.8 inches phones will be taking market share?
As of today, the competition's 7 inch tablets are selling like crazy while Apple's 7 inch tablet is still 3 months away, if they do indeed produce it.
If Apple sells it at $199, they can easily destroy the competition's 7 inch tablets and therefore limit the expansion of their ecosystem. It is all bout encroaching on the competition's ecosystem. As long as their ecosystem is destroyed, fewer will buy their phones and tablets.
Apple is not leading the technological trend these days. Samsung and others are leading the trend by making 4.5 inch and 4.8 inch phones, which have large market demand. Apple is allowing its competitor to get away with rising sales.