When I say shouldn't be worried, I meant hey should just carry on innovating and making cool and exciting new products.
But why shouldn't they stress? For these reasons.
You see, there are 3 groups of people that buy Android products.
1. Über nerds who hate apple.
These people will never buy an Apple product no matter how good it is. For some reason they have it in for Apple, and it really would be too expensive for Apple to try and chase this lot anyway. If Android didn't exist, they would buy Blackberry, Windows or Nokia anyway.
2. People who don't care and want the cheapest product.
There's no money chasing this market. Apple know this. There are so many cheap and crappy Android products available that they all fighting each over the smallest of margins. Besides, people who buy the cheapest possible smart phone won't spend much on apps and music either.
3. People who buy whatever the shop keeper tells them is good.
Unfortunately, the best product for the shop assistant is the one they make the most money on, unlikely an iPhone. Apple will slowly but surely win this demographic of people over. You will buy an Android phone once, realise you can't have all the nice features your iPhone friends have, and then not make that mistake the next time. Apple probably could do a better job of demonstrating to telcos and distributors the advantages of their customers using Apple products.
The smartphone market has boomed recently, but although Android and Samsung look like they're doing better than Apple at first glance, Apple make a lot more profit, have the highest selling individual handset, and have the highest customer satisfaction rating of anyone.