The open source OS had a coming out party of sorts in Barcelona at the Mobile World Congress and four mobile processor vendors (Motorola, Texas Instruments, Qualcomm and Marvell) showed off very early versions of their Android devices. They didn't look half bad.
Sure, this was a very early peek, but the new OS ran smoothly and quickly on all of the demo units, even on phones with processors that are known to be quite slow. Apps like Google Maps, Gmail, calendar, a video player and a music player were shown in touch-screen and non-touchscreen versions.
The interesting part of all this is the open source nature of the software. The manufacturers are getting it for free and their development is being helped along by open source developers, also for free. Will they pass the savings along to the consumer? Nobody knows, but look for new Android-powered phones by the end of the year.