@Chris Walton
iPhone apps have to ask the user for permission (either explicitly or implicitly) to access various things at runtime. It's not accurate to say that no warning is presented to iPhone users.
Applications that try to access the location get a pop-up box saying "This application is trying to access location services" and then it's up to the user to allow or deny it. If you allow it, you grant permission for all future launches. But the more common approach is that taken to sending an email or getting contact details from the address book — the only mechanism to get at those details is to use a supplied Apple dialogue. To get a contact, for example, you have to ask the OS to request that the user pick a contact, the user picks one using the standard interface, the program gets the name of that single contact back. So the user still knows exactly what's going on and grants permission.
I think there was one occasion where somebody figured out how to get the user's phone number on the iPhone using some sort of API quirk. That was a mistake on Apple's part and has been fixed. The usual prohibitions on illegal APIs act as the rest of the barrier.
That all being said, these are the main points I take from the story:
– a wallpaper app can get 3 million downloads on Android; and
– Android is doing so well that people are starting to care about malware for it.
I care less every day about Apple versus Google (other than where one side is misrepresented).