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According to the Market Intelligence & Consulting Institute (MIC), smart phones equipped with Android will reach 6.5 million units in 2009 and grow to 31.8 million units in 2013. Also, the compound annual growth rate (CAGR) for Android phones will be significantly higher than the overall CAGR for smart-phone shipments. Overall shipments of Android-equipped products, which include PC-like products and portable and residential devices, will reach 126 million units in 2013.

“Currently, products equipped with the Android platform are still mainly smart phones. Faced with the threat from the Android platform, Symbian could accelerate the opening of its system in order to attract more companies,” said Kate Huang, MIC industry analyst. “Windows Mobile could lower licensing fees in order to reduce the impact from Android.”

Google’s launch of the Android platform and the establishment of the Open Handset Alliance (OHA) have changed the overall mobile industry value chain. Android’s open character can provide more customization options for mobile operators. It also benefits the differentiation of product interfaces such as the HTC Sense UI and MotoBlur. Its free and open-source code will stimulate more consumer electronics and PC vendors to use the Android platform as well.

According to MIC, the increasing number of Android products and the variety of hardware specifications will lead to program-related problems. This will lower the willingness of developers to make investments and limit the performance application programs.

The Android Market’s 13,000 available applications lag the Apple App Store’s 85,000 total. But if Google accelerates the promotion of paid download programs in other regional markets, MIC says, it might significantly increase the willingness of application service developers to invest and rapidly increase the number of application programs to attract more users.