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Grimes said:

We don't really know if Google or any of the handset manufacturers are making a lot of money from Android. We do know that Apple is making a ton of profit off the iPhone. I have a feeling that the average iPhone user buys more apps and content than Android users.

Actually, http://www.engadget.com/2010/04/29/htc-expects-36-percent-increase-in-q2-sales-thanks-android/ 

It's just one hardware manufacturer of course, but Android seems like good business for them.