I don't see Apple being fearful to be honest. They are still growing like crazy and they are serving a somewhat different market than Android is. You simply don't buy an iPhone because you want 'some phone'. This is not to say that an iPhone is better than some Android phone, but this is certainly perceived to be something different than 'the rest' by most of my friends and colleagues.
Maybe your friends and colleagues but that isn't universal -- indeed I much prefer my HTC.
I say this as the not-very-proud owner of a Samsung Galaxy Europa in addition to my iPhone and iPad.