One of the major things Android can hold over the iPhone's head? Access to awesome, free navigation. Although according to a recent job listing, Apple may be ready to give iPhone buyers free navigation of their own. Let's speculate!
Of course, one easy track would be for Apple to just use Google Maps Navigation. But! Apple's not one to be beholden to anyone, particularly their main mobile platform rival, and likewise there's not much incentive for Google to keep iOS on par with Android handsets.
Possibly in hopes of breaking the stalemate: Apple's put up four job listings to help build iOS software. Part of the job requirement:
Valuable knowledge: * Deep knowledge of Computational Geometry or Graph Theory * Experience with Linux server-side development of distributed systems * Experience developing navigation software
Remember, too, that Apple recently purchased Google Earth-ish company Poly9. They're into navigation in a serious way.
A nav system would also be a nice way for Apple to induce 3GS owners to upgrade to iPhone 5. They're not afraid to limit the availability of features to current-generation phones, and this could be an add-on that's easily be restricted to iPhone 4 and more recent models. [Apple via Apple Insider via TUAW]