Acer Android Phone Coming This YearAcer Android Phone Coming This Year

Acer said it would be releasing this year a smartphone that's powered by the Google-backed Android operating system.

The PC maker jumped in the smartphone market this year with its Tempo line of devices. The company is looking to capture up to 5% of the growing smartphone market within five years by offering handsets that are free with contract or have a low price.

The majority of Acer's smartphones will run Microsoft's Windows Mobile, but at least one will use the Linux-based Android, according to the head of the mobile phone unit. Aymar de Lencquesaing told the Reuters Technology Summit that the company is aiming to have the device on the market by the end of the year.

The open source Android operating system was introduced by Google and the Open Handset Alliance in 2007 with the goal of bringing the openness of the Internet to the mobile space. The OS was designed for multiple mobile devices, and its lack of royalty fees made it a direct challenge to the likes of Symbian and Windows Mobile.

For Google, the move is an attempt to get more mobile users tied into its Web services, as well as move its lucrative AdWords business to the mobile space. As mobile Internet usage grows, Google CEO Eric Schmidt expects the mobile Web to eventually generate more revenue for the company than the standard Web.

With the T-Mobile G1, HTC became the first to release an Android-powered smartphone, but a variety of manufacturers will release handsets with the Linux-based operating system. Samsung has already announced it will have three Android handsets this year, and companies like Acer, Motorola, Asus-Garmin, and Sony Ericsson could also release smartphones with the Google-backed OS in the upcoming months.

information published a 360-degree analysis of the first Android-based smartphone. Download the report here (registration required).