Yesterday Google released the SDK for Android, right on time, as promised. And while most of the Apple world was focused on the UK release of the iPhone, Google made some even louder noise as they announced the $10 Million Android Developer Challenge.

In a post on the Google’s code site, “We welcome all types of applications but are looking to reward innovative, useful apps that make use of Android’s capabilities to deliver a better mobile experience.”

So what does this mean for the iPhone and the mobile phone/devices landscape? Plenty. Developers were already chomping at the bit to develop applications for Android, this prize money just sealed the deal where they will dedicate their time. And those that have promising starts to their programming initiatives will be funded by this prize money in a way that will forward their progress. When the first mobile devices running Android hit the market, it will be backed by hundreds of useful and free applications propelling those devices (at least in terms of functionality) above the iPhone.

So what do you think? Do you think Apple and the iPhone can find some way to co-exist? Or will they collectively redefine the mobile market: just in different ways?