Beat Down of Bose due to lack of innovation
For years Bose was considered the Gold standard by NON-Audiophiles. The average consumer saw bose as a quality product with decent sound. Much like the sony walkman, they had the market cornered. It is the perception of what their products stood for that made the difference. Bose also innovated a long time ago with surround sound solutions that appealed to the masses because of the "wife" factor where they do not want ugly speakers in plain sight.
Fast forward to today, and Bose, is now the IBM of their time. Failure to innovate and improve your products. Failure to appeal to the younger demographic, means you loose your spot at the top. It just goes to show you, product placement is everything today. The first time we really saw those "b" branded headphones was on America Idol, with this guy most people did not know existed, who was touted as the master of knowing everything good about picking bands and recognizing quality sound/audio. BAAM, a few years later and they are at the top. Now that Apple has taken an interest, and they see the Bose profit margin and market share taking a beating, they are finally waking up.
If in fact beat acquired technology by reverse engineering other products, well that for the lawyers and experts to decide. In the end, maybe what consumer will win.
What will be interesting is if they can recover, or if the new kid on the block will continue to make incremental improvements, to hold the title of sub-standard consumer champion.