Apple didnt need to have a gigantic share of the PC market in order to be successful and they dont need to be the overall market leader in smart phones in order to succeed.
Google’s Android OS is open source and available to handset makers at no cost. This approach is betting that with a huge market share Google can reap the benefits of massive search volume and the ad revenue associated with it. That may have made sense (or cents, if you will) a few years ago but the landscape has changed. Search and its effectiveness relative to the social web and/or app-based information is a loser. Couple that with the fact that there is no actual margin in giving away the OS to begin with and the business model looks a bit shaky.
Android will end up with a bigger OS market share and its possible that with a larger audience the App Marketplace could surpass Apple’s but that doesnt mean that Google is winning where it counts: profit.
Bonus sting: If Apple does in fact put iOS on the Apple TV making all of those apps (read: games) available then it isnt just the smart phone market that they will be dominating in. It will be apps, gaming, VoD. In short, they could own the living room like nobody has to-date.
Pre-rebutle: This isnt fanboyism, its economics.