A recent smartphone platform study of China shows that Android is absolutely dominating the landscape with 90.1% market share. Over the last quarter, iOS dropped from 6% to 4.2%, though keep in mind that they still didn't have the iPhone 5. Apparently the survey skipped knock-off devices, which means the Android share might actually be higher, though there also may be plenty of iPhones getting smuggled into China that aren't accounted for. The average selling price of Android handsets is down from $251 to $223 this quarter.
Even if Google's participation in the Android device market in China is limited, there are plenty of manufacturers in the area that are fleshing out their own Android variants to address local needs. Sure, that doesn't always work out, but otherwise, it seems like most manufacturers are doing what's to be expected of any open source project: hack away at it and make it their own.
Any Chinese readers in the house? Is Android adoption as prevalent as this study suggests, or is the iPhone smuggling market big enough that the research doesn't do iOS justice? Is there room for a significantly competing platform in China?