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I think Nintendo knows this, and will have hardware redesigns planned to allow more functions, larger/better display tech, lower price point etc... What Nintendo have as an advantage is software and a more dedicated experience i.e. the 3DS has buttons.

They're also looking to expand the uses of the 3D screen with 3D pictures, 3D video capture (in the future), 3D movies and 3D shorts (in the future) and so they have Apple covered a little bit in terms of the multimedia aspect. It means that Apple's product won't have the wow factor that they might have had if they had been first in providing portable 3D media.