I'll go out on a limb and make a bold prediction. The iPhone will likely take back most of the market share it's lost to Android in the U.S. in a year or so. If the iPhone is available on all carriers at a cost only slightly higher than the most expensive Android smartphones, why would the average consumer choose Android smartphones? Some might want a physical keyboard and some might want Flash, some may want 4G or a 4.3" display. But I'll bet that will only add up to 5% of the consumers looking for a smartphone.
Now that the iPad is being used by Android smartphone users, there's going to be a halo effect for those that are using Android smartphones to switch to the iPhone, especially if there's cloud synch. There's going to be an awful lot of older iPhone 4 stock that Apple will be dropping the price on and then there'll be refurb iPhone 4s, too. I have my doubts that Android smartphone users will be loyal enough to stick with Android smartphones. I also believe carriers will definitely try to push the iPhone into consumers' hands.
Starting with the new iPhone releases towards the end of this year, Apple is going to shift into overdrive. I have no doubt in my mind. As Apple continues to grow its economies of scale, it's going to leave competing companies struggling to achieve even razor thin margins and it will only get worse as iPhone market share goes higher. Apple is making so many future component deals that it's going to be very difficult for rivals to even get the best components in quantity.
By the end of this year, Apple should have a cash reserve of about $86 billion. What is there that Apple can't do as a fully integrated company with that much money? Apple's retail stores are just going bleed the life out of the rest of the consumer computer industry as fast as they're being opened.
I've said my piece and I'll just sit back and watch it unfold.