That analogy doesn't hold up against the dominance of Windows vs Mac.

Actually, it kind of does.

Why, ultimately, did Windows initially achieve market dominance? Because it evolved from MS-DOS.

Why did MS-DOS have market dominance? Because it ran on PC compatibles.

Why did PC compatibles have market dominance? Because they were drop-in replacements for the IBM PC.

And why, despite being relatively late to the market, despite having a relatively high price tag and a really ugly grey boxy look, did the IBM PC have market dominance? Because IBM put their product into the hands of their well-established and reputable corporate sales network dedicated to selling IBM hardware, and they sold it all over.

Of course, this argument is incomplete and flawed because I haven't used the words Lotus 1-2-3 yet. Unfortunately, the fact that killer apps also sell hardware comes as little relief for Android. The closest thing to a killer app that Android has come up with so far is Flash support. Unfortunately, with mobile Flash it's still not clear who is doing the killing and who is doing the dying.

So Windows and MS-DOS which ran on third party "dealer" imitations beat IBM originals sold through an in-house sales network. I don't see how you are refuting my argument.

Your argument is a total non sequitur to begin with.

If you were a large business buying computers in the mid 80's you bought them directly from manufacturer (Compaq, Apple, whoever).

If you were a small business you bought your computer(s) from a third party (computer store, Sears, wherever).

The Mac lost because most businesses bought for price and compatibility.

Except that Apple stores didn't come about until Apple had lost that war.

Of course, now that they lost that war, they have an awesome prize. They are the most profitable computer maker today.

Didn't Apple have stores a long time ago too? I vaguely recall going to one 25 or so years ago. It wasn't like the beautiful ones we see now, but more just like a typical strip mall computer store, but all Apple stuff.

There have always been third-party Apple-centric stores. SmallDog in VT, TekServe in NYC -- they still exist. Could it have just been an Apple authorized retailer?

Before Apple stores, you could go to CompUSA, and there was an Apple section staffed with Apple employees -- they even existed before the Apple stores became more ubiquitous.

In computers Apple are not competing on price. In fact they maintain atypically high prices there. In tablets they are.