Apple are light years ahead
I'll be the first to critique Apple (they do screw up once in a while), but the iPhone (not the Mac or desktop OS X) really is 5 years ahead of the competition. When Apple announced the iPhone I believe they stated it had been 5 years in development. It shows. Today, I have acquired a Samsung Tocco UltraTOUCH 8MP camera phone. While the camera, video and radio are unique or way better than what iPhone offers, the GUI, while quite fun, is years behind where Apple were two years ago. I got to play with an iPhone yesterday again and as I scrolled through some Twitter feeds on it's slick smooth screen, I realised that it was very hard to argue against owning ANY other device. Even the top Blackberries, Nokias and Sony Ericssons have nothing that touches the iPhone's usability, stability and processing power. Ironically, I don't think enough people have toyed with one to realise this and Apple's marketshare could in fact become equivalent to that of the PC market that MS owns, IE, over 50%. Android, while offering creative possibilities to developers, fails as a 'solution' for the person in the street.
All said, if Apple fall over when it comes to DRM and application openess, another company with industrial and software design savvy could hone Android into something equal or better.