While Android continues to dominate in smartphone operating systems, Windows Phone 7 could chip away at Android?s position with the right marketing, apps and hardware, according to a new report by NPD Group.

Nearly half of smartphone owners and those intending to buy a smartphone ? or 44 percent ? are considering Windows Phone 7 for their next purchase, according to NPD?s ?Android Variation and Value-Add? report. However, Android generated 63 percent of interest among current smartphone owners and those who intend to buy a new smartphone in the next six months.

?From an OEM licensee perspective, it?s really a two-horse race between Android and Windows Phone 7,? said Linda Barrabee, research director at NPD Group?s Connected Intelligence, Cambridge, MA.

?Android is a more competitive environment than Microsoft ? it has much broader hardware support than other platforms, has been around longer and is driving significant global volumes,? she said.

?Microsoft has to do a much better job at marketing its WP7 platform and incentivizing consumers on other platforms to switch over.?

Many interested in iOS
The report also found that 36 percent of consumers are most interested in Android.

Additionally, one-third of BlackBerry smartphone owners are most interested in Android for their next smartphone purchase.

Android also comprised at least half of all smartphone purchases for the past three quarters

IOS is second to Android in terms of consumer interest levels, with 58 percent of smartphone owners and those planning to replace or purchase their first smartphone in the next six months interested in iOS and 33 percent most interested in it.

?From a developer, publisher, apps and even consumer perspective, it really is about Android and Apple iOS,? Ms. Barrabee said.

Windows Phone 7 faces hurdles to gaining wider adoption.

According to the report, 45 percent of consumers are still not aware of Windows Phone 7.

Additionally, among the 50 percent of consumers who plan to purchase a smartphone in the next six months, but who are not interested in Windows Phone 7, 46 percent felt they do not know enough about it.

Overcoming OS ecosystem lock-in could be another hurdle, with 21 percent saying they have too  much time or money invested in another smartphone OS.

?I do think that it is a hurdle, as consumers invest not just time ? learning how to use the particular smartphone and OS platform ? but money in their smartphone,? Ms. Barrabee said.

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York