I recently got an Android based phone and have tried to be careful with what I installed, there's been a couple of applications i've not installed as they have wanted access to my phone book / text messages and the internet for no obvious reason.
I think just like a PC you need to be careful, most of my apps are from respected developers though, I do have a few random apps although they don't have access to anything important.
I do like how you are at least warned about what the application can do once installed on Android.




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