(Not a Teacher)
1) Substitute "though" with "however", if that makes it easier to understand.
2) What they are saying here is that Apple has faced stiff competition. You're right that this is different from "to be cut out for something". The sense here is "to have one's work cut for them", meaning to have a challenging task ahead. The usage here is tad unusual, though it is still understandable.
- For Teachers