Literally, Droid is the new Motorola phone sold by Verizon and running Google’s latest Android 2.0 release. The early reviews are good and, cleverly, Google issued a new turn-by-turn navigation application for the platform, also well received, complete with voice control and street view pictures. The Droid starts selling later this week, on November 6th, I’ll get one ASAP and report.

Earlier Android-powered phones weren’t so great, I bought a T-Mobile G1 exactly one year ago and wasn’t overwhelmed. I then called it “just a first effort” and wrote: “It’s only a question of time before most phone makers and cellular carriers offer an Android model, 12 months or less.  Motorola, for example, is building a “social networking” Android phone.  This is precisely the beauty of the Android Open Source, it lets phone makers and carriers try different implementations, specialized models, vertical applications.”

One year later, we have a new situation, a real contender for the lead position in the exploding smartphone market. How will Android impact the rest of the industry: Motorola, Garmin, TomTom, Palm, Nokia, Microsoft, RIM and, of course, the iPhone’s meteoric rise?

For Apple, the short answer is: the iPhone will continue to apply the Macintosh method, that is controlling all or most of the user’s experience, with similar results: smaller market share, disproportionally larger profits than the separate hardware-software crowd. More on this later.

Let’s start with a tip of the hat to Motorola. Last year, I questioned Motorola’s strategy and even its survival. Their “mobile devices” business was going to be spun off, the smell perhaps, from the more dignified “institutional” business, selling communications gear to government and enterprise customers. Fortunately, the new co-CEO for the mobile devices business, Sanjay Jha, came in, saw the on-going wreckage, dumped everything, starting with the Windows Mobile anchor. Then, listening to his techies’ advice, Jha bet on Google’s Android. The result is the Droid smartphone, making Motorola a strong contender again. More