Despite Apple’s incredible success with the iPhone, company co-founder Steve Wozniak believes it should make a new Android-powered smartphone and “play in two arenas at the same time.” Woz believes such a device could compete very well in the Android market against rival manufacturers like Samsung and Motorola.

“There’s nothing that would keep Apple out of the Android market as a secondary phone market,” Woz said during an appearance at the Apps World North America conference in San Francisco. “We could compete very well.”

Woz pointed out that “people like the precious looks of stylings and manufacturing that we [Apple] do in our product compared to the other Android offerings,” and suggested the company “could play in two arenas at the same time.”

It’s easy to see why Android, coupled with Apple’s incredible hardware, would make a dream smartphone for a lot of people. And given that Android is open-source software, Apple could, theoretically, use the platform to power one of its own devices.

But of course, it’s never going to happen. There’s about as much chance of the company launching a MacBook Air powered by Windows 8. The iPhone and iOS are already hugely successful products for Apple, so it doesn’t even need to consider going down this route. The move might make sense for a company like BlackBerry, however.

Despite suggesting Apple should turn to Android, he supports its decision not to make too many changes to the iPhone too quickly.

“If you have something really good, don’t change it; don’t screw it up,” he said. “You pick up a Samsung phone and say smile and it takes a picture, but how much innovation is that? That’s just throwing in a lot of features.”

Woz also dismissed the notion that the company he founded alongside Steve Jobs in 1976 can no longer innovate. He feels the company is simply waiting for the right time to release a new revolutionary product, like the rumored Apple television or “iWatch.”