The H.264 is a vendor specific implementation. Galaxy S will have it. Google is not just going to give it away for free. It cost money and Apple has the economy of scale to cross-license. They have it in all their products from OS to high-end editing apps. They also have Pro apps division (Motion/FCP) so they have the talent/man power to implement a superior software solution for the recording. So they, definitely have the upper hand and a cost advantage of $10-15 per unit over HTC (codec licenses/man power/talent for camera software, etc). This is just one area where it is hard for others to compete.