The new touch phone has been developed using a combination of the Google Android operating system and Linux based software written by HTC. The screen is believed to be bigger than current offerings from HTC.

Executives from Telstra who had met with Palm at the CES Show in Las Vegas to review their new Pre offering said that the new phone from HTC was "better and more functional" they said.

"We have seen both and we believe that the new HTC phone will be a real competitor to the iPhone and the Pre which at this stage looks nice but is still not delivered to market".

HTC executives who are at the show but not exhibiting have refused to comment on their new phone which is expected in the second quarter of 2009.
Palm is confident that their new phone and their new WebOS will be strong contender to take on Apple and in a sign of confidence in the product the organisers of the Consumer Electronics Show has awarded Palm the best product award in the mobile phone and smartphone category. It was also named "Best in Show" and received the most votes in a "people's choice" Internet poll.

Palm who was once a pioneer in handheld devices has been suffering hard times lately.

The touch-screen Pre unveiled at the CES Show features a new operating system and allows users to move seamlessly from one application to another, as with a desktop computer, while also running multiple applications at the same time.