The Android is giving the I-Phone a run for its money because it is everything that the I-Phone is not. First of all, the Android pricing is reaching lows that make it accessible to people who otherwise cannot afford to drop hundreds of dollars for a smart phone.
Second, the Android allows competition between duplicate applications in its applications market. This results in customers being able to choose only the brightest and best of free and paid applications.
It is up for grabs as to whether the Google Android operating system or the Apple operating system will ever be vulnerable to hackers, since both are relatively invulnerable at this time.
The recent difficulties for Apple's newest I-phone involved the tragically misplaced antenna that sits exactly where the human hand is likely to go, resulting in shutdowns. The problem was then compounded by a couple of thoughtless and unfortunate statements and a "fix" that involved buying a cover for over $20 US, when the fix should have been for free or could have been done with a band-aid level of technology.
Since the Android devices have not suffered such an appalling setback in form and function, they should be successful in filling the vast new well of opportunity that comes from a major failure of quality and reputation with a host of competitive service bundles and special offers, like the proposed $100 US model that is rumored to be coming through that monster of cheapness, Wal Mart.
The benefits of buying an Apple product have always been in the quality of the devices, along with the "out of the box" functionality and preloaded software. The drawbacks have always been the cost and the instant obsolescence of the latest goody. Since there was no competition from cloned Apple products, and since the loyal Apple customers do not deviate from the consumer norm, there has been little incentive to change the business plan.
But now, the Google Android, tied to no one service provider, manufacturer or distributor, can allow a highly competitive marketplace for hardware and for competitive service provider offers as well as a wider array of different devices that will put the Android into more discerning and discriminating hands. Also, the highly competitive Android applications marketplace will put more choices in the hands of those who want high quality and constantly improving applications on the devices.
In the end, this does not spell the end of Apple, it is just a major setback in the ongoing competition with Android and is a major wakeup call for even more over-the-top improvements and product hype.