Android is kinda on the Open Source software model. What makes Open Source interesting, in this case, is it loosens, but does not break the hold that Google has on the OS. So, hardware players have some freedom to offer the Android they can get, without coordinating with a grand maretking scheme. We see Android 1.2,2,1,2,2, and now 3,0 out there, at the same time, its OK.
Why is this OK? Because the upgrade path is smoother for the user, thee is a coexistent app market for the early OS on smaller devices. That market is stationary, more closely matched to the hardware, a much better deal all the way around. This is a great spread of OS variability allowed with the spread of low cost devices in shapes and forms yields more consumer matches.
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