HTC is a high-profile partner in Android, Google’s foray into the mobile phone industry. So when the Taiwanese device maker held a global event Tuesday to introduce the “world’s most advanced phone,” industry watchers anticipated news on Google’s open-source mobile platform.

They’ll have to wait a few more months. Tuesday’s announcement focused squarely on HTC and its newest phone, the Touch Diamond. Packed with features such as a high-definition touchscreen, 3D software and speedy mobile broadband, analysts say the handset could solidify HTC’s reputation as an innovation leader.

That’s exactly HTC’s aim. The company views design as the foundation for its budding brand. After years of manufacturing handsets for other companies, HTC has begun asserting its own name with high-end smartphones. (See: “Seeking Out Android“) It’s already made a mark with its Touch series of touchscreen phones. First introduced in 2007, the various models have sold more than 3 million units globally, says HTC Chief Executive Peter Chou. Fourth-quarter 2007 shipments place the company fifth among smartphone manufacturers–after Nokia, Research In Motion, Motorola and Apple–according to researcher IDC.

The Touch Diamond, which is about the size of half a deck of playing cards, may be smaller than the iPhone, but HTC is hoping consumers will find it has big appeal. HTC wanted the design to be unique enough that “it can be recognized from across the street,” says HTC’s chief innovation officer, Horace Luke, and that it would be both “lovable and usable.” A user should be able to operate it with one hand while walking down the street laden with bags, says Luke. That translated into a shiny black phone with a faceted back–an homage to a diamond’s edges.

The phone includes a circular navigation wheel to help consumers navigate its menus. And HTC has also layered its own user-friendly software over the Windows Mobile operating system from Microsoft–that means consumers can reach their work e-mail but also see an easily navigable interface.

The real art lies within the phone, however. To encourage mobile Internet browsing, the Touch Diamond offers speedy upload and download connections, Wi-Fi and a glass screen with about four times better resolution than HTC’s previous Touch phones.

iPhone comparisons are inevitable, from the specialized versions of YouTube and Google Maps to the ability to flip through photos on the phone in a kind of 3D effect. Built-in sensors automatically rotate the phone’s screen based on the user’s grip.

“There’s a lot of fluidity to the overall user experience,” says Michael Gartenberg, vice president and research director at Jupiter Research. “That’s something HTC can use to try and differentiate from other Windows Mobile devices.”

For all its “intelligent zooming,” though, the Touch Diamond’s technology doesn’t match Apple’s famed “multitouch.” Nor does the phone’s camera, at 3.2 megapixels, match up to some of the premium 5 megapixel camera phones on the market.

HTC notes that it isn’t looking to go head-to-head with Apple’s second-generation iPhone. After rolling out the Touch Diamond in Europe in June, HTC will bring it to North America during the second half of the year. That route sidesteps the iPhone’s release, widely believed to be slated for June, while remaining within striking distance. “[The Touch Diamond] should be of interest to any North American carrier that’s not carrying the iPhone and wants a comparable, high-end, touchscreen device,” says Gartenberg. In Europe, Orange, the wireless arm of France Telecom, has announced it will carry the phone.

HTC’s chief Chou calls the phone the biggest launch in the company’s history. “It’s the result of 10 years of experience,” he says. “We didn’t make any compromises to get the best design.” He says the payoff will be in branding luster and new converts. Though the phone hasn’t been priced yet, it’s likely to go for more than HTC’s other handsets, netting the kind of customer that might traditionally buy a top of the line Nokia or Sony Ericsson phone.

“Earlier HTC phones, like the Tilt, have been sold more as work phones,” says Avi Greengart, research director of wireless devices at Current Analysis. “This is much more consumer-oriented and multimedia-centric.”

Says Gartenberg, “To make the move from a [manufacturer] that lives behind the scenes, especially at a time where there’s so much competition and buzz around the iPhone, you really need a cool, flashy device that captures people’s imagination.”

Article Source: Forbes.com