I think maybe Google should've done a better job of promoting the OS.
Keep in mind...Google is the opposite of Apple in pretty much every way.
Apple makes hardware, Google makes software.
Apple spends millions on advertising, Google spends $0. (this does not count PR, because clearly both spend on this)
Apple has a vision for exactly what they want their closed platform to look like, Google has a vision for building an open platform that is undefined by them, and others can modify.
Apple builds one product (very well.) Google builds an alliance with hardware makers to let them do what they do best.
This is the Windows vs. Mac fight of the 1990s. Windows won that round because they had a strong partnership with Intel and thousands of manufacturers and software developers.
The difference today is Google is putting all their money into developing the Android OS and the Open Handset Alliance, which will rely on their partners, HTC, Samsung, HP, Dell, Asus, Acer, Lenovo, and more to create hardware. And they are attempting to build a network of thousands of developers (like Apple has done.) Developers follow the crowds, if Android can gain the traction predicted it will have a huge audience.
Look at this simple example:
Google said they would modify Android for China Mobile. Apple said no. China Mobile has more subscribers than the USA has citizens. Enough said.