Apple iPhone: Google's answer is unveiled

The first mobile phone to use highly anticipated software developed by Google has been unveiled.

ARM, the British chipmaker, demonstrated the unbranded prototype at the Mobile World Congress in Barcelona.

The phone, tipped to rival Apple's iPhone, runs on Android, a mobile phone operating system launched by Google last November.

It features an internet browser, map software, multimedia applications, text messaging, calendar functions and email as well as a phone.

The operating system is backed by an alliance of more than 30 mobile phone operators, handset makers, software firms and component manufacturers.

ARM's prototype uses Google as its web browser home page, uses Google Mail as its email application, and Google Maps for navigation.

Companies hope that by developing phones that are easy to use as well as beautiful to look at, they will be able to hold off the challenge from Apple, which has sold more than four million iPhone handsets since it launched last July.

Despite the Android project being at a relatively early stage, the first Android-based mobile phones are expected to go on sale later this year.

Strategy Analytics, a research firm, has estimated that Android will be installed on two per cent of smartphones by December.

It is estimated the mobile advertising market could be worth more than £5.5 billion by 2011.

Source: Telegraph.co.uk