It's good that the financially handicapped have an opportunity to buy tablets on the cheap. Hey, not everyone can afford a Mercedes-Benz. Some will just have to settle for Toyotas. The Nexus 7 is the is like the Toyota of tablets. Just as Toyota is not putting Mercedes-Benz out of the auto business, neither will ASUS put Apple out of the tablet business. It's different strokes for different folks.
Windows PCs outsell Macs. They certainly do. However, the Windows PC business is in a huge slump and most of the companies selling them are losing money. So, let them sell cheap Windows PCs at razor-thin margins. There are plenty of consumers out there who can't afford better. But even as cheap as these Windows computers are, consumers are still hesitant about purchasing them. Apple makes good profits selling their computers and Apple has increased sales over the past year while most companies selling Windows PCs are not doing financially well at all.
The unfortunate result of Windows becoming so dominant is that certain software then was available only on PC's and the Mac became a niche product. In addition, Microsoft managed to convince the world that we would all return to the Stone Age without using Office. In effect Windows PC's became the english language of languages. Now, the phone thing may be different in that you don't yet have an Office or financial apps which only run on clones. The danger is that some app becomes absolutely dominant and only available on one platform. I'm sure Microsoft would love for Office to be that app on Windows phones.
Apple has always been in a dangerous position in this regard. Fortunately, the Samsung's of the world do not seem to produce great software. It's all about the software and, to a certain degree, price. Google has an ad based revenue model and so they can afford to have the world flooded with Android devices of all prices and quality. It's hard to imagine that this will not at some point affect Apple in a negative way much as Windows 95 really hurt the Mac. Perhaps there is some strategy that Apple can use in order to not become irrelevant as they did on the desktop ( with some niche but important exceptions). I do hope they come up with something as the Windows and Android worlds strike me as being really ugly garbage dumps.