When the iPhone burst on the scene it merged the portable media player with a cell phone.   Apple has since ruled the world of smart phones. Many manufacturers have tried to muscle in on the same market but the iPhone remains the king of the Hill.

The latest device to take a shot at Apples super phone is the Driod, set to release November 1st in America. So does the Droid have what it takes to knock the King of his thrown?

The Droid is certainly creating buzz. The phone will run on Android; a mobile operating initially developed by Google. The involvement of the search giant almost always means great quality. Expectations for the new phone are running high.

In the marketing blitz leading up to its release the Droid are taking shots directly at the iPhone. The ads points out the features the new phone will have that the iPhone does not. On the opposing front. Verizon Wireless - the service provider offering the Droid – are going after AT&T's 3G network coverage. AT&T is the carrier for the iPhone.

The network coverage might be one of the strongest advantages the Driod will have. High speed mobile internet access is the next natural step for the hand held devices. In this area Verizon is well ahead of AT&T. To make matters worse AT&T are not known for great coverage even for normal calls. Verizon has pushed their network coverage as the main reason to use their network for years.

The problem for the Droid is that to many consumers the phone coverage is not the main reason why they are sticking with their iPhones. The iPhones app store has grown to be extremely popular. Apple are well aware of this and their advertising campaigns for the iPhone has lately focus almost exclusively on the many and varied apps available for their phone. It's hard to overestimate the huge momentum this has built for the iPhone. To have any shot at being competitive the Driod has to quickly establish a strong app base.

The open architecture of the Android operating system is the silver lining for the Droid. Apple are notorious for their strict restrictions on anything that can be developed for their platforms. The philosophy behind the restrictions is to control quality and minimize crashes. This strategy might backfire as the competition has improved the stability of their products while still providing an open platform for development. Expect to see a huge independent development effort for the Droid; especially if the device sells decent in it's first year on the market.

The future of the iTunes music store is another possible area of concern for the iPhone. Through the massive success of the iPod Apple has established iTunes as a premiere place to find and buy music online. Considering the enormous success Apple has had in the music market it is surprising that not more companies have gone after the same market. The competition is usually from small start ups rather from other heavy hitters.

The rumored launch of a Google music service changes this landscape dramatically. If the strong rumors turn out to be true; Google is set to release an integrated way of searching for, playing and buying music online. The potential impact for Apple is considerable. The Droid will be running the Google supported Android. Integration with Google's services is bound to as seamless as the iPhone works with iTunes. Google Music will be available without having to install or update any propietery software. A web browser is all you need to get access to all the music you can imagine. This could spell trouble for iTunes.

How will all this play out? The Droid is probably the most serious challenger the iPhone has seen. At the end of the day though Apple's flagship device has a huge head start. The extremely strong brand name alone will carry the iPhone's momentum for quite some time. The strong application support is another area where Apple is far ahead of the field. To crack into this market will prove extremely difficult. Still, if the Droid is going to have any chance at usurping the iPhone it will have to overcome Apple's advantage in this area.

It is difficult to see the Droid catching the iPhone in the short term. The device just has too many things going for it. Apple are undoubtedly hard at work improving their product line to face the stronger competition; their established presence in the music and application market will probably carry the momentum through to the release of the next generation iPhones.

Still, with the iPhone under attack by the Droid, and the Zune HD in many ways leapfrogging the iPod Apple's position looks more threatened. To maintain their hold on the consumer base they will need to step up their efforts.

The ball is in your court Steve Jobs.