How will T-Mobile's Google Phone Debut Compare to Iphone's?

It will be the first phone that uses Google's Android operating system which was created by Taiwanese handset maker HTC.

T-Mobile unveiled the HTC Dream, aka the "T-Mobile G1" today in New York but will only start selling in stores in October 22 and will retail for $179.

T-Mobile's G1 is available online to existing T-Mobile customers starting from today. Monthly plans start at $65 a month. It will later hit stores in the U.S. on October 22 for a price of $179 with a two-year voice and data contract.

The handset will be available in the UK early November, while the rest of Europe will receive it in 2009.

The phone is $20 cheaper than the iPhone, an attempt by T-Mobile to lure customers away from Apple.

HTC reportedly expects there to have been 600,000 to 700,000 Dream units shipped by 2009, some 70-plus days after the launch.

Apple Inc. sold more than a million of its latest iPhones in the first three days, and 1.39 million of the original devices within three months of their June 2007 debut.

The T-Mobile G1 is expected to sell anywhere between 250,000 to 450,000 units by the end of the year, depending on when the phone hits retail stores, says Michael Gartenberg, vice president of Jupitermedia.

However, Google's Dream phone will be the first major smart phone to use open-source technology, which could further revolutionize the smart phone industry.

"The G1 is the first device coming to market supporting Google's operating system Android. Although this will give us a taste of what the platform will be able to do, we are expecting some limitations given this is the first device," said Ms Roberta Cozza, principal research analyst at Gartner.

"There will be more to come in 2009 when manufacturers such as Samsung and LG will deliver their devices. Android has the potential to become the de facto operating system (OS) for Linux and we expect sales to reach around 10 per cent of the smartphone market in 2011."

The phone features a touch screen, a fold out keyboard and also incorporates WiFi connectivity.

The handset works internationally and offers innovative features such as a scanner that allows consumers read product bar codes and compare prices online.

It features a 320x480 touch screen, a hidden QWERTY keyboard, Wi-Fi, 3G, and an accelerometer. Integrated on the G1's keyboard is a trackball for thumb-based navigation, and a 3-megapixel camera.

Finally, there is a dedicated Internet and phone search button, built-in Internet applications and access to thousands of applications via the new Android marketplace.

Last Updated: September 23, 2008 15:13 EDT