The First "Googlephone", iPhone's Challenger

Apple is about to meet a challenger. The iPhone has dominated the smartphone landscape for more than a year. But now, Google could halt -- or slow -- its progress.

The first phone to use Google's Android operating system has been created by Taiwanese handset maker HTC, and T-Mobile will be unveiling it this week and bringing it to the U.S. market next month. The HTC Dream, aka the T-Mobile G1. The public appearance will be on Tuesday in New York.

 

And while analysts don't expect the "Googlephone" to become a runaway hit, it should post some big numbers.

The T-Mobile G1 is expected to sell anywhere between 250,000 to 450,000 units by the year's end. It depends on when the phone hits retail stores, says Michael Gartenberg, vice president of Jupitermedia. At 400,000 units, it would represent about 4 percent of the smartphones sold during the fiscal fourth quarter in the United States, says research firm Strategy Analytics.

The HTC Dream's success will depend on how heavily Google and T-Mobile market the device, because "No one associates Google with a consumer electronics company," says Gartenberg.

But that could change. Leaked photographs show Google will have its logo on the back of the device. It's likely that Google will market the device at least somewhat. And T-Mobile is likely to make a heavy marketing push for the G1, especially given that the carrier has just spent a lot of money upgrading its nationwide network to fast 3-G data speeds.

Mobile search is expected to be a $2.4 billion by 2011. "The fact that Android is being launched on T-Mobile and not on market leaders such as AT&T highlight that the major carriers are not willing to concede the mobile market to Google," says Collin Gillis, an analyst with Canaccord Adams in a research note.