HTC unveils the first Android-powered phone in Australia

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.

Milanesi said the Android platform is likely to spur Linux adoption and Android has the potential to become the de facto operating system (OS) for Linux with expected sales to account for about 10 percent of the smartphone market in 2011.

"The G1 is the first Google-branded mobile device to appear in the market. But Google is not aiming to become another phone manufacturer," she said. 

"Instead, it is looking to gain a larger market for its services and applications. The phone will provide a taste of what the Android platform is capable of, but we expect teething issues and some limitations. There will be more to come when manufacturers such as Samsung and LG deliver their Android-based devices." 

Karim Temsamani, general manager, Google A/NZ said it wants to build a great web ecosystem and web developers are building fantastic applications. 

"We are now bringing the ecosystem to the mobile phone and Australians are at the forefront of this. We have a very strong engineering team in Australia and we are continuing to develop and build some great applications," he said.

"Australians have a history of being early adopters of new technology. What any user enjoys on a desktop PC they can now enjoy on their phone. We think users will embrace it and this will change the way people use mobile phones." 

Michael Smith, acting managing director, Optus Consumer said it was not selling the phone outright because it is the first in the market. He declined to talk about its network coverage and any criticism of its service. 

The HTC Dream is available through Optus from 16  February. Optus post-paid mobile customers can buy it on four specially designed plans to suit their budget starting from $59 per month, plus handset costs.