The answer is simple, even more so then you think; No manufacturer can come close to Apple's IPod, because IPod is the best!
there is no doubt about it, this is one of these ideas that microsoft just could not steal from apple in time, Apple created IPods, and has hundreds of people working on their improvement every day. Why can't the competition come up with anything better? simple, not enough money, time, experience, creativity and most of all, not enough perfection, Apple is a perfectionist company, their stuff sells well because it looks really awesome, always has new features, like video thing in the new nano, and Apple is the company that pays loads of attention to the look, nothing beats it because of that. After all, who would not want a top of the line technology, always new features, combined with reliability and that looks super awesome?
HCNA at NYC showed just how much Apple is dominating in that business, 95% of the people that were jogging in the central park or walking the streets listening to music had apple ear phones and 90% of those led to an IPod. (Is that not true Tormod?(or did you not pay that much attention?)) Apple dominates that market, and to tell you the truth, i wouldnt want any other company to do it, Apple is the ultimate IPod company

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Microsoft, the leader in using innovative tactics to promote irksome experience, coupled with antiquated technology that's held together by a pyramid of makeshift afterthoughts.
Apple, the leader in using irksome tactics to promote innovative experience, coupled with an antiquated core that's enhanced by state-of-the-art afterthoughts.
Linux, the leader in not using any tactics to promote user-defined experience, coupled with state-of-the-art core enhanced by innovative afterthoughts.
