The phone, available through Optus, comes with a variety of Google applications for users to customise their phone.
However, according to Gartner analyst Carolina Milanesi, 'without the power of Apple's PR and marketing hype, the demand for the G1 will be much lower than for the iPhone'.
She said the device provides HTC with faster entry into the consumer market and a larger addressable market beyond its traditional Microsoft WM user base.
Anthony Petts, sales and marketing director A/NZ, HTC claims the company still has a very strong relationship with Windows despite the partnership with Google.
"It is not a Window's mobile but an Android phone," he said.
"It's about accessing the online world and making it easier to open applications and access services.
"The online Google account is synchronised with the HTC Dream account. The Android market is constantly updated with exciting new applications for download and users can customise the device for what they want to do," he added.