Don't we all love the fears debates on iOS versus Android, the changes of Windows Phone 7 to have an impact or the slow death of RIM and Nokia. Well all these discussions are not really important! The market is big enough to have multiple winners.
Isn't this the same as Ford versus GM or who build better cars BMW or Mercedes? In the end the market is big enough to allow a hand full of companies to make money. In the car industry there are no bad cars anymore, they are all good and only differentiate from each other based on emotion attached to the brand
The smart phone industry will become the same as the car industry, all phones are good and will continuously increase features, pixel, GHz, memory, etc. and reduces size and price. Every newer model will have improved specifications and might temporary have the best feature set. The brand emotion however is much more precious and doesn't change that quickly, but does in the end make the biggest impact. When MG Siegler writes in his An iPhone Lover’s Take On Windows Phone about Android as a poor-mans iPhone that says enough about the brand!
The brands will develop to attach more emotional value to their brands and target specific users. It will probably go as far as having specific phones for specific occasions. It will be come like wearings specific clothes for sports, works or a formal dinner. We might even get dress up phones. The whole notion of features and technology specifications will slowly loose it's importance.
It's all going to be about the emotion and feelings during and after using the device. The chart below says it all.