The HD2 is also the first Windows device to ship with HTC Sense -- a customized interface for enabling handset users to function in a more simple, natural and personal way. For example, users can choose to run with an animated background as well as place shortcuts to people, web sites, or applications on the home screen.

This makes the new smartphone "more simple and natural to use by enabling people to personalize their mobile experience in their own unique way," said HTC CEO Peter Chou.

Snapdragon Enhancements

Measuring 4.7 x 2.6 inches and tipping the scales at 5.5 ounces, the 0.43-inch thick HD2 is powered by Qualcomm's 1GHz Snapdragon processor, which is capable of rendering high-resolution 3-D games, images and maps. Snapdragon also has optimized power-management capabilities that enable HTC's new smartphone to deliver up to eight hours of video playback or 390 hours of standby operation off a single charge of the handset's 1230-mAh Lithium-ion battery.

Under the hood, HTC's multiband cellular handset has Wi-Fi, Bluetooth and GPS capabilities. What's more, built-in sensors enable the display to automatically adjust screen brightness based on lighting conditions and even scale down the ringer volume the moment the user picks up the handset.

The HD2's integration of a capacitive touch display with Microsoft 's Windows Mobile 6.5 OS means users will be able zoom in or out of Web sites, Microsoft Office files, PDF documents, and pictures by spreading or pinching their fingers. Also on tap is Microsoft's new My Phone service, which enables users to automatically back up and synchronize photos, music tracks, contacts and text messages with other computing devices.

"The HTC HD2 shows what's possible through our close partnership with HTC," said Microsoft CEO Steve Ballmer. "It breaks new ground for Windows phones by delivering a beautiful multi-touch screen that people will love."

Turning the Corner

Though the HD2 initially will launch in Europe and Taiwan, the smartphone is slated to become available in the U.S. in the first quarter of 2010. HTC and Microsoft noted that a U.S. carrier has already agreed to carry the device, but did not say which one.

Taiwan-based HTC clearly hopes the HD2 will help reinvigorate its global sales. HTC has remained mired in the number-four slot in smartphone sales since the third quarter of 2008, Gartner analysts noted in August, when the company reported lower expectations for the second half of this year due to product delays.

With the launch of the HD2, however, the handset maker hopes to return to sales growth next year. Fortunately for HTC and other handset vendors, the mobile market recently began seeing the first signs of an improvement since the onset of the economic crisis last year.

"During the third quarter, we saw a number of channels promoting older devices at significantly lower prices," which for many customers "was enough to spur demand and push volumes higher," said IDC Senior Research Analyst Ramon Llamas. "Now that we have moved into the fourth quarter, vendors are setting the stage for further gains by launching their flagship devices to meet pent-up demand."