I have a friend who is an avid apple user, however she got a super cheap deal from her wireless company for an android phone. And as she says she can install the apps she really cares about (facebook e.t.c.) so sure she might prefer an iphone but cost wise as far as she's concerned she'd be mad to turn down the android because it's "good enough".

And from a development point of view, it's not as if we can easily cross compile apps from one platform to another so with limited resources we have to choose. iPhone or Android, at the moment the calculation is iPhone first Android second, if that changes, and with sheer weight of numbers on Androids side it might, Apple should probably be worried about drifting into irrelevancy.