Apple is doing just fine.
News has it that Android's latest OS offering nicknamed "Honeycomb" will require dual-core processors. While the new Motorola Atrix has one, even the upcoming Samsung Infuse doesn't, and neither does every other existing Android phone out there.
But, wait until Honeycomb comes out and you'll have millions of end-of-line, incompatible, non-upgradable, and/or abandoned single-core and slower or insufficient devices, making the end-users feel abandoned by their carrier, manufacturer, and Google, altogether.
Meanwhile, Apple has and will continue to push the iOS hardware and software in decent harmony. Slow and steady wins the race.
Dan Morrill who is a member of the Android team tweeted that the news about a minimum processor requirement is false. Google hasn't put a minimum requirement on Honeycomb.