As it turns out, this had nothing todo with data-uri's or browsers, this was a bug with android. Very hard to track down! Basically, given the jpeg uses CMYK color space, this causes problems on android, using standard jpeg or switching to png will likely fix the problem.
Note this bug likely affects all recent versions of android, the bug reported: Android: 2.2, 2.3, 3.0, 3.1, 3.2, 4.0
More details here: https://code.google.com/p/android/issues/detail?id=57502