Android has higher market share, but iPhones are much more profitable. As of Q2 2011 iPhones took 66% of the profits in the smartphone market[1].
So it's not really fair to say that Android is "crushing" the iPhone-that's like saying Honda is crushing Lexus.
[1]: http://www.bgr.com/2011/07/29/apples-iphone-accounted-for-66...