the android market may be flooded with an insane amount of products but there is little to no competition because 99.999% of what comes out is complete crap.
other than the major branded ones, much of the lesser knows ones but massive in numbers tend to be systems running something like android 2.3 but with only 128MB ram and a 500-600MHz CPU and resistive touch screen
no one is going to buy them, and the ones that are worth buying have a huge price markup.
Incread of apple discontinuing the old iphones and making a new one each year (as if they are expecting their product to only last 1 year) they need to instead focus on bringing the price down for the current iphone.
The software market has not caught up with the iphone's hardware yet, all they need to do is fix a few design flaws with the antenna, then keep everything else the same and focus on bringing down the price. the iphone should not be costing more than $150 with out a phone contract.