Apple is being caught with it's pants down again. First and foremost is the screen size. It's too freaking small!!! When is Apple going to get a clue and make their devices with a bigger screen!!! Who cares if you have a "Retina" display when it's only 3.5". There have been phones with 3.7", 4", 4.3" and larger devices like the Dell Streak that have been around for months. And, now, some of these vendor will be coming out with just as high resolution as the "Retina" display.
The ironic thing is that Apple was partly responsible for starting this trend of bigger screens on phones when they came out with their 1st iPhone. How long ago was that? How big was their screen back then? 3.5"! Who big is their screen now, all these years later? Still 3.5"!
Apple had the largest screen on a phone back when the iPhone first appeared.
Lastly, because of Apple's iPhone people started have been progressively using their phones less and less for voice, and more and more for data/web browsing/maps/games/ebooks, etc. Functions that only benefit that much more from a larger screen. His demo of the ereader app was ridiculous. You could only see a very limited amount of readable text which then requires constant page turning. About every paragraph.
Larger screens on Android phones is one reason it's overtaking the iPhone. Another is the fact that you still can't upgrade the the storage capacity yourself through a Micro SD memory card slot. With the way users use these devices today, that's huge.
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