Android has come a long way, but it is true that they "own" the market now mostly because they are so cheap. Even a highly rated android phone like the Samsung GS3 could be had for $0 with a contract in Canada back in the summer when it was only a month or two on the market. Apple costumers are willing to pay more to get a product they believe is of higher quality build, and more stable. They keep their phones longer, and are very loyal to the brand. The biggest threat to Android will be MS and their new OS and phones. I think you will see WP8 products with very low prices (maybe even $0 with contract) and that will steal away some of the Android market.
In the absence of evidence to the contrary, always assume you have the upper hand.
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