I wrote early this year how Apple used it's smart UI design to do what VC's couldn't pouring hundreds of millions into technology here. Good design matters.
So does good business smarts. I went to the Apple store today and I was told that once you buy the iPhone, you have to go through iTunes to register it and get your phone number set up. This is new. Normally, you have to wait at the store for activation, which is a pain.
Apple has thought this through. First they innovate in the buying experience, make it quick and simple and second, they get you to iTunes right away and own you for the rest of your life, with this integration. How will somebody every switch out of an iPhone when it is so well integrated into your music. Low churn does wonders in the cell phone business.
Another hats off to Apple.