People are amazed at how well Apple is doing, they are doing better now than Microsoft! I think Apple understands the power of design and this has helped get them where they are now. Apple hardware/software (since they are almost the same thing) focus very heavily on appearance and design.
Alex of Airtight Interactive points out:
Apple understands that laptops and phones are the new watches and jewelry. We are using them majority of our waking life. They define us to the people around us. They need to be both functional and beautiful. Apple products have plenty of hardware and software issues, but people are willing to forgive them since the products are so nice to look at.
He also points to the design by Andrew Kim that I love. I hope other companies get into their heads the fact that design really IS that important!