Apple is not afraid of Android any more than Porsche is afraid of Ford. They are targeting effectively two distinct markets. Android doesn't do a great job of

Apple is not afraid of Android any more than Porsche is afraid of Ford. They are targeting effectively two distinct markets. Android doesn't do a great job of competing at the high end of the market outside of tech nerds. Seriously, the one year old iPhone 4 is still outselling even the newer Android phones on Verizon and AT&T. What Android is killing is becoming the default smartphone at every price range with every feature set you can imagine. Android covers all the smartphones that iPhone doesn't. iPhone isn't for everyone, Android tries harder to be. Android is much less focused as a platform than iOS. Android is going to keep working hard to be upmarket, and iOS is going to keep working to go downmarket with prepaid devices, more iPod Touch type devices with 3G or GPS or both. As a developer I just care about getting paid and in my experience people on iOS are more willing to buy my apps. Android users tend to be cheapskates. This can and will change at some point, but Apple is doing better now than they ever have. I doubt they are truly afraid of much right now. They are executing better than ever before.