Google, for its upcoming smartphones using the Android operating system, will build an “Android Market” similar to Apple’s AppStore.

The announcement came via Google’s Android Developer Blog in which the search engine giant also announced winners of its software development contest.

Android Market is “an open content distribution system that will help end users find, purchase, download and install various types of content on their Android-powered devices. The concept is simple: leverage Google’s expertise in infrastructure, search and relevance to connect users with content,” Google’s Eric Chu wrote in the blog.

The service will have feedback and ratings options similar to those in YouTube, Chu added.  Developers will get a management dashboard, while the market itself is scheduled for a beta release with the initial Android-based phones this fall.

“Some decisions are still being made, but at a minimum you can expect support for free (unpaid) applications. Soon after launch an update will be provided that supports download of paid content and more features such as versioning, multiple device profile support, analytics, etc. … We will share more details as they are available,” Chu said.

For the developer contest, winners of multiple $275,000 prizes include software for finding a taxicab, tracking your carbon footprint, shopping and entertainment.

Pictures of the first Android phone, from T-Mobile, are also emerging.  Handset blog Engadget linked to photos from a Chinese discussion forum.