Android has had a lot going for it, but it has it's flaws. First, the manufacturers aren't making any money. Samsung and HTC are the only OEMs currently spinning a profit. Samsung is the only one really packing much of a punch, and fragmentation is still the number one issue.
Where do I begin... let's start with Sammy. Samsung have blown the industry away, beating both Nokia and Apple, the used-to-be top manufacturers in their divisions (Nokia was top in the 'dumbphone' market, and Apple was the leading smartphone producer). How did they accomplish this? Marketing, and branding. They've been advertising everywhere from TV, YouTube, Internet ads, joint operations with carriers and more. The term 'galaxy' is slowly becoming interchangeable with 'android'. They are also one of the only companies still putting microSD card slots in their phones, and with removable back covers.
The other OEMs are struggling to stay profitable, and most are failing even at just that. HTC had a good line-up with their One series (One X, One S, and One V) but still really struggled to gain traction in Samsung's dust. Why did I say 'good' lineup? It isn't great. Many users dislike Sense to the point where it's a deal breaker. HTC really like the uni-body design, which doesn't allow for microSD cards or removable batteries. HTC seems to be so focused on design that it makes usability sacrifices just to keep the design amazing.
Android's future could be very different than it is today if Samsung continues to be the only main player. The smartphone market has flourished because of all the competition. With only 1 key player, they won't have to worry about keeping ahead of the pack; they determine when and where. Without competition, eventually android could turn into RIM: a lack of innovation (on a sidenote RIM is finally doing a roundabout turn with their new BB10 software debuting on January 31, 2013).
With so many phones available and the world-wide market share android currently enjoys, it's in a pretty happy place. However, it does need to remain innovative as Windows Phone 8 has had a better launch than expected, and BB10 is coming soon.
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