As for Apple, they have themselves in a bit of a mess. It's not that they make bad phones, it's just that they don't set themselves apart anymore. It's becoming very hard to be innovative in the smart phone market. But that's what investors demand from Apple.
Google has it easier, because they don't have that obligation. They release the software and the OEMs define the market. Want a bigger phone? A bigger battery? Anything else? Fine, someone will make it and bring it to market. And if the consumers like it (like with screen size), everyone else will follow and Google gets the credit.
I wouldn't say Apple is in massive trouble though. On the train every day, I still see mostly iPhones, especially with women. The question is more five years from now, after people go through a few phone contracts. How does Apple keep its position as the innovator if people see it surrounded by phones doing much more?