Here is a great analysis by Google employee Tim Bray on the the scope of the Smartphone Game (via Daring Fireball).
"The Numbers Are Really Big. Insane, I mean. The billion-plus phones sold per year. The number of active subscriptions, which is greater than half of the human population. The number of new Android devices that check in with Google every day. The line-ups outside Apple stores for every new iOS device. The hundreds of thousands of apps. The ridiculous number of new ones that flow into Android Market every day. Everywhere I look, I see something astounding.
This is the big league; bigger today than the computer industry ever was, and growing fast. This is as fierce a concentration of R&D heat and manufacturing virtuosity and distribution wizardry and marketing mojo as humanity has ever seen."