[citation][nom]Vladislaus[/nom]It will be very hard for a single Android phone to overtake the iPhone because of the sheer number of alternatives available. There are a large number of manufacturers and each manufacturer has a large number of phones. Just to put things in perspective, the most used android phone is the Galaxy S2 and that represents just 11% of the top 20 most used android phones. For a single Android phone to surpass the iPhone, the iPhone market share must drop dramatically.[/citation]
Exactly, all the Android phones are struggling to differentiate themselves.
They find themselves in exactly the same market as the iPhone, which also has to compete with the 'sheer number of alternatives available', just as the Android phones do.
The iPhone just manages to do it better by having a clear differentiation and selling point, as evidenced by its record sales figures - in other words, it's a more compelling product.
Android is a double edged sword for manufacturers - it means they are directly compared to all the other 'me too' companies who offer the same operating system, so have to compete on price and so reduce their margins. Apple is able to bring more to the table having been innovative enough to develop their own OS.
That being said, Apple also leads, in my view, both the phone and tablet markets from a hardware standpoint, not only looking at benchmarks but also going on the 'feel' of the system. I think if Apple didn't lead all the metrics for reliability, user satisfaction, battery life, software support, number and quality of apps - it wouldn't necessarily have the lead it has today.
So I guess their success is a combination of developing arguably the best and most robust hardware, whilst having an excellent differentiator in the form of their app store and and OS which is tightly integrated.