Droid Doesn't?

I just noticed a Verizon commercial where they're giving away a HTC Droid Eris if you purchase a Motorola Droid. These kinds of deals usually don't happen unless sales slow down, which makes me wonder if Droid sales have already peaked. Verizon may also be running the promotion as a preemptive strike against the Google Nexus One, which is scheduled to be formally announced this coming Tuesday. Engadget's early review claims that the Nexus One is faster and better-designed than the Motorola Droid and slightly thinner than the iPhone 3GS.

Handset manufacturers competing in the Android space aren't going to be able to keep a "best-of-breed" position for very long. Motorola leapfrogged HTC, and now HTC looks like it's going to leapfrog Motorola. Samsung and Sony Ericsson are also in the market. It's going to be very tough to compete unless you've got the ability to crank out improved models quickly.