Earlier quoted context omitted.
While Apple may only have 30% of the smart-phone market, they make around 70% of the profit in the that market. I hardly call that punishing.
I think they realize that this position is no more sustainable than their position was in the desktop market and they're acting out of fear. If you've used a recent, high-end Android phone you know that the quality gap is mostly gone and that the apps that most people care about are now available on both platforms. Apple is not going to be able to sustain their astonishing profit margins without the help of the court…
The iPhone also outsells all androids combined on every carrier in the US where the iPhone is available. I think apple is doing fine.