All that iPhone needs to be a $150 billion dollar business on its own.
Apple is by far the most profitable smartphone manufacturer. The iPhone alone is as big as whole of Microsoft and who would have thought of this just 5 years back.
But slowly Apple seems to be losing out to manufacturers like Samdung, HTC etc and the reasons are very very simple:
1. Price: Yes 16 GB iPhone 5S sells for $650 off contract, which is equivalent to 16 GB xPeria Z1 or Samsung S4. But the difference pretty much starts after this. 32 GB iPhone is $750 and 64 GB iPhone 5S is $850 off contract.
The S4 or Z1 have huge advantage in the form of memory card which is not available to iPhone. So a large group of people who are looking for more memory are simply going to leave the iPhone.
Of Course this might sound nothing to people living in US, but its a big reason why people are jumping towards S4 and Z1 elsewhere, since Z1 & S4 offer lot of cheap memory at very competitive price.
The solution is not hard to imagine. We don't need memory cards. Apple products just need a price correction by about $100 - $130 on the lower side & that is enough to blow samsung out of water.
2. Size: A large group of people feel crippled by small screen size of iPhone. The fact that there is only one form of iPhone with 4 inches makes a person's choice to choose Android much easier.
Yes, 4 inch form factor is more than good enough for people who love iPhone's, but for someone looking for a change, its just not good enough. And mind you that number is pretty big. Even a hardcore iOS developer whom I know uses Z1 only because Z1 has a bigger screen which enables one to watch Streaming videos & videos stored in memory cards in a more comfortable way.
Just these two points and I think iPhone's will rule the world again. I don't think App 2 App communication & customization is a huge deal since majority of users at the moment do not even know about all the options.