Regarding rapid obsolescence, this seems to work very well in Asian markets. They typically release a far greater number of devices, because there is a strong market for second hand phones, and many people like to keep switching to the latest thing.
I think comparing them to Apple on the basis of sold phones in China is justified.
Looking into my crystal ball, I further think that their strategy is so brilliant and their execution is so good that we're witnessing the rise of a new giant.
Give it 5 years and they'll be in the same league as Apple and Samsung on a world-wide basis, not just in China.
This is the mass market he's referring to, not the folks who're spending $600-800 on the latest iPhones or Galaxy Notes.
Still, makes me feel positively ancient given I used my Nexus One for nearly 3 years before moving to the Nexus 4.