[profquail]

Can you launch before they do? It doesn't matter if they have more people or better funding if you can.

Or, do you think you can execute the idea better than they can? There are plenty of apps on the the app store released by big companies that are garbage...if you can do it better, you'll take away some of their unsatisfied customers.

If you can't do either of those, then I'd either try to find another angle to beat them on, or recognize that I was going to be wasting time if I kept pouring time and money into the project and move on to my next idea.