Apple makes more profit than the 82% of the market that they don't control. That's a kind of obliteration.
"could", you mean "can't." They've been trying to grab 10% market share since the iPhone pushed them below that, and have never recovered, in spite of having the best resources of anyone out there.
Well, problem is there is no room for a third place IMHO. This happens in general when a dominant design wins and I think we are witnessing one. Of course they can fake it with their new windows sales, but that opportunity is lost.
http://www.idc.com/prodserv/smartphone-os-market-share.jsp
Did Android obliterate Apple? That margin is about 60%.
Yes, Microsoft screwed up, but they can always turn it around and grab a quick 10% share. They've got tons of money and talent. I'd never count them out. In fact, they're still pretty dangerous.