Nintendo today revealed that it's sold a whopping 113 million DS units (10 million of those are DSi). That said, in the last couple years Apple has really seen its games business accelerate on the App Store with the iPhone and iPod Touch. Analyst Michael Pachter of Wedbush Morgan Securities noted that the iPod Touch in particular, because of its price, is a very worthy competitor for the DS.
"The DSi carries a relatively high $169 price point, and the DSi XL is likely to be priced even higher, making the purchase of a $199 iPod Touch more tempting for gift givers. While we think that the DS is a superior gaming platform, the iPod is a more versatile device, and has a 'coolness' factor that is difficult to overcome," Pachter commented.