What are you talking about? There are plenty of companies making money off of selling Android devices. Google isn't one of them because Google doesn't manufacture phones or charge for Android. Consumers get the iPhone for the OS/interface. The underlying hardware is largely irrelevant. What this data tells us is that consumers are embracing a smartphone OS outside of the iPhone. Apple isn't capturing the same level of market/mind share domination as it had with the iPod. The space will get even more exciting when Microsoft releases what looks to be a solid OS in Windows Phone 7. Ultimately, this is a market that will be commoditized. Android is FREE and a viable competitor. Microsoft is a commoditizer and will charge peanuts for its plaform. If there's one thing that Microsoft does right, it is to claw its way back into a market people forgot about it in. The premium that Apple charges for its platform/phone will be eroded over the next few years.

The OS wouldn't have nearly the lock in without the monopoly of the office component. The office component has no reason to remain exclusive to Windows, and will do a better job of seeking markets in alternative operating systems.