The group's estimate comes as T-Mobile USA is expected early next week to announce formally the first Android phone.

Google, the force behind Android and the Open Handset Alliance, has been touting the phone at public events over the past few weeks. It was at the Google Developer Day in London earlier this week.

The FCC certified the phone in mid-August and speculation has been flying since then about the launch plans.

The first Android phone, called the Dream in FCC filings, is made by HTC. The phone is rumored to go on sale Oct. 20, although T-Mobile will not confirm that until next Tuesday's launch.

The phone has a touch screen which is said to be larger than Apple's iPhone, plus GPS, Wi-Fi and will use T-Mobile USA's 3G network.

The handset alliance formed by Google late last year includes many other phone manufacturers besides HTC, including Motorola, Samsung and LG, so analysts believe many more Android phones are in the pipeline.

Neil Mawston, Director, Wireless Device Strategies at Strategy Analytics, said : "We forecast 10.5 million smartphones to be sold in the U.S.during Q4 2008. We estimate smartphones with Google's Android operating system, led by HTC of Taiwan, will reach 0.4 million units in the quarter, for a 4 percent market share. Android is a relatively late entrant and it will join an increasingly crowded market alongside Blackberry, Microsoft, Apple, Palm, Symbian and LiMo."

Chris Ambrosio, Executive Director at Strategy Analytics, added: "Google has the brand power in the USA to make a big impact at launch. The main issue will be operator subsidies. As seen with the iPhone and smart devices in general, retail prices need to be well below $200 to be competitive.

"Longer-term success will, of course, rest on Android vendor ability to create designs with wow factor and an intuitive user-interface. Google will do its part to drive growth, and we expect Android will eventually offer a compelling range of mobile applications emphasizing Googles online assets, such as advertising, mapping and search."

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