Android - Architecture
Android operating system is a stack of software components which is roughly divided into five sections and four main layers as shown below in the architecture diagram.

Linux kernel
At the bottom of the layers is Linux.This provides a level of abstraction between the device hardware and it contains all the essential hardware drivers like camera, keypad, display etc.
Libraries
On top of Linux kernel there is a set of libraries including open-source Web browser engine WebKit, well known library libc, SQLite database,libraries to play and record audio and video, SSL libraries responsible for Internet security etc.
Android Runtime
This section provides a key component called Dalvik Virtual Machine which is a kind of Java Virtual Machine specially designed and optimized for Android.The Dalvik VM makes use of Linux core features like memory management and multi-threading.The Dalvik VM enables every Android application to run in its own process, with its own instance of the Dalvik virtual machine.
The Android runtime also provides a set of core libraries which enable Android application developers to write Android applications using standard Java programming language.
Application Framework
The Application Framework layer provides many higher-level services to applications in the form of Java classes. Application developers are allowed to make use of these services in their applications.
Applications
You will find all the Android application at the top layer. You will write your application to be installed on this layer only. Examples of such applications are Contacts Books, Browser, Games etc.