As an Android and iOS developer, it is tough to support all possible screen sizes, aspect ratios, hardware specs and versions of Android. Sometimes not having a newer version of Android(>= 4.0) you miss a lot of features that people come to expect and your code is riddle with backwards compatibility stuff just to support Gingerbread, or worse(ie: Donut).
Of course, it doesn't help that Google just made the Action Bar part of the backwards compatibility package, after all of this time not supporting it and saying just use the Sherlock library, which has it's own share of complications and headaches.
With videos it's even harder, my new phone only records in *.3gp files(for video, Razr Maxx HD), which means you have to have more transcoding on the backend to make it available to others.
And then you have the Note and Note 2 which are just mini-tablets and not really phone sized anymore. And the lack of support in Android(which iOS has btw) to figure out if you are on a phone or not, really hurts the user experience.
The cost is great, and the hassle is hard to justify, so with a fixed budget I am not surprised they aren't developing for it just yet.
And think even with the fragmentation going on the iOS land, they still only have like 5 screen sizes to worry about (in the tablet area), so you can really tweak the user-experience on each version of the iPad/iPad mini to make the most of the real estate and hardware. Plus they all share a common base with most of the features already there, so it makes it easier to program for, and less backwards-compatibility stuff in your code to mess with and support