Interesting that the other examples he used were about differentiating through branding rather than the product. Apple succeeds because its product is better than the competition. I doubt many people use Apple products because they identify with the catchphrase about "changing the world for the better". They use apple products because they can do what they want to do better.
Right, you have to communicate the reasons that your product is better in a way that potential customers will understand. Although if you truly do something way better, your customer's will do that for you.