Whether we realize it or not, Apple has been grooming themselves to be around for quite a long time in this market. One major reasons why is iTunes.
Let me explain. No, it doesnt just have to do with having a program that allows for syncing like iTunes does. Sure, that would be awesome to have for Android, however, that is not what ultimately keeps people tied down to Apple products. It's the fact that so many people have purchased iTunes music, iTunes videos, iTunes movies, iTunes TV shows, and iTunes apps that jumping ship to Android could be a very costly proposition.
I have a buddy who would love to come over to Android for the increased customization, the quicker firmware updates, and the always exciting new devices being released on an almost monthly basis. However, he has over $500 invested in things purchased through iTunes that he would love to have on-the-go (mostly music) that would become practically worthless to him on Android. Apple did a very good job of tying down customers in a way where their customers didnt even realize what was going on until it was too late.
However, Apple, having tasted what it feels like to be the hottest thing in the cellphone world, wont go down without a fight by any means. Steve knows what it is to fight from a corporation standpoint, as he brought the company from the brink of disappearing, to the giant it is today. So he obviously wont be letting the iPhone and its OS just fizzle out.
But, Android has a few things going for them. One would be a quicker turnaround on new Firmware versions. Apple gets one a year, and that's about it. Android recently has been getting them in about half that time (although it may also slow to once a year as I just recently read, and hope is not true). Second, would be the pace at which new android-supported devices are released. Again, Apple gets one refresh a year, and that's it. Whereas Android is getting a new device out on an almost monthly basis! How exciting is that?! It allows for Android to always be on the freshest/fastest technology available for not just cellphones, but other things like tablets, alarm clocks, mini-tablets, etc.
It's a very push and pull sort of deal between Android and Apple, but I feel that Android is certainly holding their own more and more, and it will (and already is) a force to be reckoned with.