What Apple risks here is its reputation as a hot company that can do no wrong. If it’s smart it will call the iPhone a “reference design” and pass it to some suckers to build with someone else’s marketing budget. Then it can wash its hands of any marketplace failures.
It should do that immediately before it’s too late. Samsung Electronics Ltd. (US:SSNGY) might be a candidate. Otherwise I’d advise you to cover your eyes. You’re not going to like what you’ll see.