There has only been one true demise for Android and its app developers — fragmentation. This literally meaning that Google releases so many versions of Android that the lazy manufacturers cannot keep pace, and resort to building new phones with old operating systems. At this point in time, there are 3 primary versions of Android.
They consist of nicknames after desserts, and they are Android 1.5 “Cupcake”, Android 1.6 “Donut”, and Android 2.1 “Eclair”. But in the past four months, Google and its phone manufacturuers like Motorola and HTC have been updating their handsets to version 2.1, with fantastic results. As according to Google (or better yet, the Android Developers) in the chart above, Android 2.1 has a 37.2 percent market share, while 1.6 devices have 28 percent, and Android 1.5 coming in at 34.1.
Although this can all change. You see, in only a few days, Google will possibly debut Android 2.2 “FroYo”. The nickname derives from Frozen Yogurt, and it will do anything but freeze Android, because this release is targeted at making small UI improvements, built-in tethering, Flash 10.1 web browser support, and supposedly finding way to completely nail down fragmentation once and for all, by making the update available on your computer rather than OTA (over-the-air) from your wireless 3G network onto your phone.
Source: Android Developers