G1 owners likely won't be eligible for the subsidized $199 price for the myTouch, because the G1 came out so recently that T-Mobile has yet to recoup its subsidy through service fees. Many iPhone 3G owners are facing the same conundrum, as AT&T won't subsidize the newly released upgraded model until subscribers have "paid off" the subsidy.

Both the G1 and the myTouch are made by HTC Corp. of Taiwan.

"The G1 was highly successful and captured the imagination of thousands of developers as the first Android-powered phone," said Andy Rubin, vice president, mobile platforms at Google. "With myTouch, T-Mobile is poised to capture the imagination of consumers everywhere, and by expanding the availability and appeal of Android-based devices, they're giving developers a bigger market for the next wave of killer Android applications."
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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