Well, I now have an Android phone.
And, frankly, I don't think Apple has much to be worried about.
Sure, it's a sexy little phone. A little bit sleeker than my year-old (to me) refurbished iPhone 3G. It has a mini-SD card that I can replace, unlike the iPhone. It has a battery that can be replaced, unlike the iPhone. The camera has a flash, unlike the iPhone.
But despite all that, I don't see giving up my iPhone anytime soon. The user-experience of the iPhone is miles ahead of the Android, and it appears that the Android isn't even heading in the same direction. The Android seems to be taking the standard path set out by all the previous phones I've owned: cluttered and crowded screens, non-orthoganal commands, and a reliance on convoluted menu trees.
On the iPhone, the natural gesture is the tap. Want to do something? Tap the thing on the screen and see what you can do.
On the Android, the natural gesture is the menu. Want to do something? Hit the menu button.
Granted, I've only been playing with it for half a day, but I'm far from impressed. Had I purchased this phone with my own money to replace the iPhone, I'd be extremely upset about now. As it's a work phone... meh. It's there for three things:
1) To receive (cell) phone calls.
2) To make (cell) phone calls.
3) To receive work-related email when I'm away from my desk.
It'll do just fine with that.
But I'm not giving up my personal iPhone. And I don't think I'm the only one.
Pity, really. I had hopes that the Android might give Apple some competition in the UI space.