T-Mobile USa plans to sell the first Smartphone to run on Google Inc.’s new mobile software. According to people familiar with the matter, They will be facing off against Apple Inc.’s iPhone and Research In Motion Ltd.’s BlackBerry with a device that blends aspects of both.

The phone’s manufacturer, HTC Corp., forecasts sales that are rosier than analysts’ estimates. HTC says it expects to ship 600,000 to 700,000 units of the smart phone, dubbed the Dream, this year, a person close to the situation said Monday. The target exceeds analysts’ estimates of 300,000 to 500,000.

T-Mobile, a Deutsche Telekom AG unit, is expected to announce the phone Sept. 23, people familiar with the matter said. The device is due to hit stores as soon as the end of October, these people said. The phone’s pricing couldn’t be determined. [via Wall ST. Journal]

T-Mobile’s HTC Dream is said to run on Google’s Android, Android is a suite of software for mobile phones based on open-source technology, backed by some of the largest industry companies who call themselves Open Handset Alliance.

There were “leaked photos” of the said HTC Dream posted earlier this month though no date was set about its launch but this time T-Mobile phone is coming out on schedule. Backers are optimistic Android-based handsets can take sales from rivals.

HTC Dream is one of the most highly anticipated Smartphone eversince it was tagged as the iPhone Killer. Many are already curious if it can even parallel Apple’s iPhone. I guess we’ll just have to wait and see until its announcement in Sept 23.

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