Have you ever wondered how many mobile devices are running with latest version of android Platform? Google just answered it. In the developer page, google has published a small report on the distribution of android version among existing mobile handsets.
Every third device runs on Froyo (Android 2.2) and 40% of devices run of Eclair (Android 2.1). So, altogether 3 out of 4 devices are running on android 2.1 or above. Recently Steve Jobs was found ranting about the fragmentation levels that exist in the android platform. If the current trend continues, then more devices would be running froyo. But Keep in mind that Gingerbread is set to be released by year end. So the distribution again changes.
The android situation is akin to Browser versions. If you develop for IE 6 it should work in IE 7 and IE 8. But if you develop with IE 8 in mind, then you have to make the extra effort to make it compatibile with IE6 and IE7. The extra effort might be minimal or huge depending on how much of the new features in IE 8 you are tapping on to. You get the drift.
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