The Droid is not the same as Android.  Android is an operating system made in part by Google.  Droid is a brand owned by Verizon with hardware provided by Motorola and HTC, branded as Droid, Droid Eris, Droid Incredible, Droid 2, etc.  There are 47 different Android phones on the market today and many more on their way.  There are 19 different manufacturers of Android phones.  The phones are branded under names including G1, N1, EVO 4G, MB300, X10, Magic, Galaxy S, etc.  Each phone has different versions of OS it can run, different tradeoffs of screen resolution, battery life, processor speed, camera resolution, network speed…

There is one iPhone.  If you want to buy one the price will be the same anywhere you shop and you will be presented with two choices: color and storage size.  You know you’re getting this years model, with the most up-to-date OS and a balance of features that have been very carefully crafted.

When people talk about Andoid’s fragmentation problem they’re usually thinking of issues developers face.  The much bigger issue is Android’s and its many sub-brand’s marketing fragmentation.  

Most people don’t read gadget blogs and don’t care about clock speeds.  They want a simple choice of Coke vs Pepsi when they’re thinking about a new phone. Android vs iPhone is not Coke vs Pepsi.  Its not even PC vs Mac.  Its one clear choice vs a big pile of chrome, glass and plastic confusion.

Android may be catching up in terms of feature lists and bullet points.  Some of its hardware will undoubtedly be more powerful than the iPhone during parts of the product cycle.  In terms of mind-share for normal people in the outside world, however, Android isn’t even close.  And its going in the wrong direction.