Android’s threat to the iPhone

If Google plays its cards right, its unveiling of the first Android-powered phone on Tuesday will prove to be more than a distraction from iPhone-mania – it will be the moment the search giant capitalizes on Apple’s control issues.

First, the lowdown on Google’s (GOOG) Android mobile operating system. Think of it as an attempt to do for phones what Windows does for the PC, or OS X does for the Mac. But unlike Microsoft (MSFT) and Apple (AAPL), Google isn’t looking to make money off of phone software or hardware; instead, it’s giving Android away for free to any phonemaker and wireless carrier who will bake it into a handset. Why? If people use their phones to get online, the more they’ll do Google searches, click Google ads, and in the process, make Google money. [READ MORE]