Just come out and say it then, they've fallen behind Samsung. They're so busy patent trolling that they've let iPhone become stale while the competition blows on by. The most innovative thing Apple did with the 4S was Siri and how has that worked out? It didn't change anything. If you want to pat Apple on the back for standing still that's fine but in a world where technology is progressing at an exponential rate, I expect so much more from the "leading" company in the business.
And you're okay with the iPhone not having LTE? Do you have any idea how slow 3G data speeds are on Verizon and Sprint?
I assume that refers to Android right? And I also assume this is a huge fat joke right? Android is not progressing... it's still the same sloppy POS it was before Google sloppily slapped a touchscreen UI layer on it. Sure, it was polished a few times and other people have put their crap on it (Samsung TouchWiz, Moto Blur, etc.) but when I see what an iPhone offers me and Android blindly listing a quad core processor as if that is a deal breaker, I know which one is better.
What makes a Mac different from a PC? They both use the same CPU architecture, same ram, same display technology (LCD, LED backlit, etc.), have a keyboard and mouse and a trackpad. Heck, even the trackpad hardware is from the same vendor. But what differentiates the two is software. The drivers for the trackpad under OS X is much better than anything in Windows/PC. The typeface is much better in OS X. The power management algorithms are better in OS X. Not to mention, UNIX beats the living heck out of Windows in security, performance, resource management and etc.
Same with the iPhone, iPad and iOS. The iPhone CPU is ARM which isn't that special to Apple. Other smartphones use ARM processors too. It's got an IPS panel. And a Sony camera module. And a battery made using lithium ion cells. But what makes the iPhone the best selling phone in the US? Not hardware for sure. No one gives a flying rat's behind about how many cores it has and how fast the clock speed is. Heck, most people don't even know half the terms in that last sentence. But what they do know is, the iPhone has better battery life, better camera, more apps, better apps, gaming and "it just works". I don't need to root or worry about malware and trojans and viruses and scams like Android. I don't need to turn it on and off because it stopped working. I don't have to wait for Instagram to finally come to Android. And it works as an excellent iPod. Oh and it's got a lot of accessories like cases and screen shields and the like.
My girlfriend's biggest complaints about her Android phone was no accessories, terrible battery life and no apps. The problem with Android is the focus on specs. Look around, no one cares how many cores you have, how many GBs of ram, how fast the CPU is or how big your screen is.