So Apple has redefined its strategy and its stating that they have better content. Unfortunately this is another area where Apple will falter again. The reason is simple, they are not leading in any technical aspect and they have started to follow Android's lead. If iPhone 5 does not change this, Apple's lack of hardware/software innovation will leave them vulnerable. Apple invented this market with a lead envied by other for over two years. But like many large corporations it was slow to change, just as Microsoft was before it.
When the G1 came out, it had copy/paste, multitasking and other features iPhone 3G lacked. Savvy programmers (cyanogenmod / eugen, etc) gave Android the ability to tether. Google provided Android navigation that became a standard for most people that travel, avoiding the need for a separate device to find an address. All this made Android popular and allowed its tide to grow.
These innovations did not exists under the iPhone ecosystem. It took two years for Apple to catch up. This year it has finally given iPhone the ability to provide a hotspot, still a higher cost (ATT police at work!, no doubt, Verizon will follow, its lost revenue). Apple's stance on Adobe Flash will have to change, as it only provides part of the Internet experience. This will cost Apple lost opportunities.
Currently Android systems are being used for more than just phones. The OS has become pervasive in all aspects of technology because of its open nature. You already see Android on TV sets and washing machines. It wont be long before low cost Android tablets replace many auto dashboards, some with very impressive capabilities like night vision. Android's technical lead spawns many areas beyond hardware/software, it includes more than just the smartphone/tablet markets. This is Apple's Achilles heel.
Android is not without its share of problems, mainly due to litigation from Oracle. Behind the scenes, other competitors actively pursue to topple GNU General Public License undercutting Androids roots. Android is at odds with Linux GPL term itself! Both Google and Open Handset Alliance partners have been careless in the development of current affairs. The good news for users is that the tide is too strong and can't be derailed in the short term.
Apple has a very nice interface, but seldom provides solutions for its users. If it does, it does so at a higher cost or limitations. Android has gained acceptance and leads across all markets because it provides innovating solutions. Android has made most of its users happy, even with its share of wrinkles.
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