Of course I doubt Apple are too worried. They only have to ship a few at $1000 a pop (lifetime cost) to turn their profits. The main thing they have in their favour is that the big companies all develop their apps for iOS whilst some don't bother for Android and fewer bother for BlackBerry.
and of course WinPho seems to be going nowhere, not helped by confusion over what WinPho 8 will be.
I've just gone and got myself an iPhone 4S (on a 12 month contract from Orange) and I have to say I love it. Having had to put up with the HTC Desire both through Froyo, Gingerbread and even redoing it with Cyanogen to faf about with the lacklustre space it became simply a chore to own. Constantly clearing caches and difficulties with Google Play and bizarre crashes did not matters. The keyboard was shit, continually coming up with even more preposterous suggestions for moments where I'd simply missed the space between two obvious words.
Course the iPhone isn't flawless. Here are my list of issues.

Safari is pathetic as a browser. and of course it won't let you set the rather lovely Chrome as your default, instead forcing you either to jailbreak of piss about with bookmarklets.

The fact you have to use iTunes. It's just ghastly and why does Wifi sync never work properly? And why do apps keep downloading to my PC for no good reason, just have them on the sodding phone.

The inflexibility of the homescreens. Sometimes I rather like having gaps between my icons. I'll admit I was never fond of widgets or tiles or anything like that so that doesn't bother me,

The inability of apps to add themselves to the sendto menu. Why do I have to have two versions of my gmail account just so I can send things via the mail app as it won't let gmail hook in? Admittedly my android sentdo menu was ridiculously long with "send to BBC News" and other such nonsense but frankly it is not a difficulty concept that I might want to take a PDF from my dropbox and email it out? Having to piss about with opening it in Adobe Reader (that I had to install just for this purpose) then emailing it out is just poor.

Why can't you keep your iCloud contacts in sync with your google address book?
And various other complaints. Still the fact that it just works without exploding, or failing to lock and then getting VERY HOT in my pocket as it does fuck only knows what launching app after app like the Desire did still means I prefer it.
The Desire, FYI, has been unlocked for giffgaff, reset back to a nice clean install of Cyanogen and gifted to my dozy brother. He seems content with his new toy.
EDIT: Also - does anyone else use Hullomail? Rather nice little visual voicemail for those of us who aren't on o2. Anyhow mine keeps resetting itself back to the Orange voicemail every time the phone reboots, is this meant to happen? Obv its easy to fix but you have to remember to do it!