On last week's Google Earnings call CEO Eric Schmidt stated that the latter half of this year would see lots of activity and announcements surrounding Android:
Overall it looks like Android is going to have a very, very strong year. We are already aware of many, many uses of Android, which as you know is open source, where literally the devices we hear about near the announcements, so the open source part of the strategy is working. We have also recently just announced an upgrade in new software for
Android which is out now among the technical community and again, the stability, the proof points are really there now.
There are announcements happening between now and the end of the year that are quite significant from operators and new hardware partners in the Android space, which I won’t preannounce except to say that they really do fulfill much of the vision that we laid out more than a year ago.
On the netbook side, there are a number of people who have actually taken Android and ported it over to netbook or netbook-similar devices. So we think that’s another one of the great benefits of the open source model that we’ve used. We’re excited that that investment is occurring. And again, largely outside of Google, which we think is great.
Some have argued that Android isn't ready to be an OS for PCs/netbooks, but SkyTone (among others) obviously disagrees.
With an open-source OS and carriers willing to subsidize hardware to gain new wireless contracts (AT&T, Verizon, O2) we're probably going to see numerous Android netbooks that are supercheap if not free (over time). With this move into the netbook world all but formally announced, Google is competing not only with Microsoft but with Apple on two fronts.
It will be very difficult for Eric Schmidt to remain on Apple's board much longer.