Android is currently battling it out with the iPhone's OS X for the mantle of best smartphone OS*, but it looks like it's about to spread its wings a bit further and take on the iPod, according to Chris Nicholls over at Current.com.au. Apparently local iRiver distributor CR Kennedy let slip that the Korean company is working on an Android-powered PMP to take on the iPod Touch.
The device, which will be dubbed the K2, will feature a "3.5-inch touchscreen, Wi-Fi, built-in browser, accelerometer, Bluetooth and a digital TV tuner."
As Chris points out, that digital TV tuner probably won't make it to Australia, but the fact that the device is powered by Android gives it a huge amount of potential, considering the Google OS is one of the few other places you can introduce apps to portable devices.
Also worth noting is that iRiver are reportedly working on both an ebook reader and a portable internet tablet. Whether either of them are built or released in Australia is another matter all together though...
* Palm hasn't released a WebOS phone in Australia yet, so it doesn't count. Also, that's a pic of the P7 above, not the rumoured device.