Sprint, HTC Unveil Touch, The Latest IPhone Rival

NEW YORK -(Dow Jones)- Sprint Nextel Corp. (S) and High Tech Computer Corp. ( 2498.TW) unveiled the Touch, a touchscreen smartphone they hope can take on the iPhone.

It's the latest in the wave of touchscreen phones unveiled in the aftermath of Apple Inc. (AAPL) and carrier partner AT&T Inc's (T) successful launch - Verizon Wireless also unveiled two phones utilizing the technology. For HTC, it marks an unusually splashy debut for a handset maker that typically leaves its logo off the product. The Touch, meanwhile, fills out Sprint's portfolio of smartphones.

"This device is for someone who can't live without either the (professional or personal) world," said Jason Cole, product manager at Sprint.

The Touch is positioned closer to the higher end of its range of smartphones with a $249 price tag with a two-year contract. Late last month, Sprint unveiled the Palm Inc. (PALM) Centro for $99, giving it a low-end offering. Research in Motion Ltd.'s (RIMM) Blackberry line and the older Palm Treos lie in the middle.

Sprint, which is among the most aggressive carriers in pushing data services, wants to get more smartphone and feature phone products in its line-up because it encourages the use of services beyond simple voice.

This is among the higher profile launches for Taiwan-based HTC, which has long provided smartphones that carried the brand of the carriers it supplies. It is the largest provider of smartphones using Microsoft Corp.'s (MSFT) Windows Mobile operating system. The Touch, however, carries the HTC logo in its back, a signal that it wants to make a name for itself.

"We want to build some of HTC value over time," said Peter Chou, chief executive of HTC. "We want to show that the HTC brand mean a quality device."

While it's uncertain how well the Touch will do in the U.S. - it's interface isn't as elegant as the iPhone, despite Chou's assurances that they keyboard function is superior - the device has already done well in Asia and Europe. The Touch has already sold 800,000 units overseas since its debut in June.

The Touch actually came out overseas before the iPhone hit the market in the U.S. Both devices have pushed the focus on touchscreen technology as a user interface.

"I believe this will become quite a trend," Chou said of future phones.

Verizon Wireless, jointly owned by Verizon Communications Inc. (VZ) and Vodafone Group Plc (VOD), recently unveiled the Voyager and Venus by LG Electronics Inc. (066570.SE), which feature similar technology.

On the iPhone, Chou said it is an entertainment device with a phone. In comparison, he considers the Touch a high-end phone with entertainment capabilities, touching upon HTC's experience in creating cellphones.

While comparisons to the iPhone are inevitable, HTC said the phone has been in development for two years.
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