Some description:
Imagine Activity as a plate that hold one big cake.
Fragment would be a container that slices the same cake into pieces.
Each slice contains it own logics (listeners, etc).
And in total they are almost no different with the one big cake.
The benefit:
When you plate can't hold a big cake. (Screen is small) You can easily use a a few plates (Activity) to hold each of them WITHOUT the need to move your logics into the new activity.
Better re-usability. I have some instances where I could reuse a fragment entirely in another App. You might claim that a custom view could does that too. But refer to point 1, I could reuse it with just few lines of layout changes but for a custom view, it have to find a way to plug it into both layout and code.
It is, in some sense, a more OO ways of organising your UI logics in Android programming. When you have a feature (A new partition on the screen for example), you create a new Fragment class, with minor modification to existing activity class. However if you are programming only with activity, you will need to add logics and make big modification on tested class.
Just my 2 cents. :)
