Tech Rumor of the Day: Google

The new G2 myTouch smartphone announced Monday by T-Mobile might have its physical shortcomings, but it still manages to put Google's (GOOG Quote) Android system in a good light.

The 3G HTC phone is the second Android-based device for Deutsche Telekom's (DT Quote) T-Mobile, only this time around it lost its physical keyboard. Less phone, more money -- the phone available in black, white and "merlot" will start selling in "early August" for $199, $50 more than the G1.

The G2 myTouch for T-Mobile.

T-Mobile says the thinner myTouch is targeted to a less techie crowd, presumably that means a less texting and typing dependent customers, and more for the general consumer. A T-Mobile representative also added that the G1, with the slide out keypad, will continue to be available.

The bad news for T-Mobile is that myTouch will go head to head with the now cheaper $99 Apple (AAPL Quote) iPhone, a heavyweight champ with some 20 million units already sold.

What's impressive with the myTouch, however, is its software. G2 owners can customize the images and application icons on the screen to their taste. In a market teeming with big-screen smartphones, the vanity plate approach might help the G2 stand out a bit.

But that's just the superficial. The new Android 1.5 version operating system is the brain where the real G2 beauty lies.

Google has become a critical smartphone application, and the G2 helps showcase some the mobile Google power at the user's fingertips.