The Nintendo President talks about the recent competitor in the handheld space. http://www.nintendoworldreport.com/newsArt.cfm?artid=22863 In a recent interview with Kotaku, Nintendo of America President Reggie Fils-Aime stated that he doesn't believe that Apple's success with its iPhone OS products has much of an effect on Nintendo's handheld market. Fils-Aime described the data he'd seen by saying that iPhone and iPod Touch users were downloading many apps, but those apps were often free. He added that most users did not spend long periods of time using their downloaded software.
"Clearly it doesn't look like their platform is a viable profit platform for game development because so many of the games are free versus paid downloads," Fils-Aime said. He later added that the games that Nintendo provided on the DS were much different. "If our games represent a range between snacks of entertainment and full meals, depending n the type of game, (Apple's) aren't even a mouthful, in terms of the gaming experience you get."
Despite these words, Nintendo has been keeping their eye on the iPhone OS lineup. Earlier in the year, Nintendo CEO Satoru Iwata stated that if Nintendo couldn't differentiate itself from Apple, then their future in the market was bleak.