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Google's Answer to the iPhone Nears Its Debut

By Alexei Oreskovic Sat Aug 30, 1:59 PM ET
AP Photo: T-Mobile's G1, the first phone to run Google's Android software, is expected to be unveiled this month. (AP Photo/Mark Lennihan)

- The first mobile phone to run Google's Android software is expected to be unveiled by T-Mobile USA this month, setting up the fall's most-watched technology duel: Google's open platform against Apple's closed empire.

The device, built by Taiwan's HTC and expected to be called the G1, combines a touch screen with a slide-out keyboard and tight integration with Google's search, maps and e-mail services.

Android's philosophy is the iPhone's opposite: the software is free and open, and Google says any developer may build for it without seeking permission. An online store for applications, called Android Market, is planned for launch.

"Apple proved people want the real internet in their pocket. Google's bet is that ten companies building phones beats one," said an analyst who has been briefed on the launch.

The stakes reach beyond gadgets. Mobile advertising is the next great battlefield in Google's rivalry with everyone — and carriers, handset makers and software firms have all signed on to Google's Open Handset Alliance.

Apple, for its part, has sold more than six million iPhones and shows no sign of slowing. Neither Google nor T-Mobile would comment on launch timing.

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