More people stick with the iPhone then moving to the android platform. Far more Android users move to the iOS platform. iPhone is still outselling the Galaxy S2 even though there are more Android phones being used. Does not sound like damage control to me.
I do believe you are correct.
As one who uses & enjoys both platforms, when it comes to smartphones, I'd prefer to use an iPhone as my primary phone.
Why? Because it integrates so well with my personal Apple Eco System of twenty years.
Why am I using my iPhone 4S as a secondary phone? Simple. After trying Android and experiencing the wonderful advantages of a 4.3" display, with it's ultra fast, fun, and extremely accurate SWYPE input method, it's hard to live with the tiny keyboard & screen that thus far, Apple has clung to.
If Apple were to bring the iPhone up to date with these features I'd give up Android.
Make no mistake, these two:
1) Large 4.3" display
2) SWYPE
Are the ideal combination and are equally important in my experience.
SWYPE is so different, that many pass it by due to lack of patience and jumping to a negative conclusion before giving it a chance. I nearly did that myself. However when I went to their web site, watched just three of their brilliant 60 second tutorials, I immediately "got it".
After just two days of practice I was SWYPING far faster than my fastest speed on any prior smartphone. It makes a huge difference. You will never know without trying it.
Sadly Jobs ego couldn't handle the fact it's so superior, Apple took months before deciding to reject it from the app store approval process. One can only surmise that many involved in the process at Apple saw the potential, argued in favor, but got shot down by Steve.
At the end of the day, if Apple wouldn't be quite so combative with the competition, a little bit more flexible with products (like having a larger model as well as the current size) they'd make even more money and that's just a fact.
Many of my cross platform friends feel the exact same way. We are using Androids but mostly because Apples stuck in their ways.
When you are as mobile for business & pleasure as we are, the extra screen size & time saving SWYPE are too good to ignore. It's as simple as that.