MoneyWatch Tech

Apple Lags Google, HTC, and Sprint on 4G Phone Features

By Erik Sherman

Updated on: March 24, 2010 / 2:27 PM EDT / MoneyWatch

Apple (AAPL) has been the leader in the smartphone market for a number of years. However, the company faces challenges from a number of fronts, which explains why Steve Jobs has gone on the lawsuit warpath to try and stifle products that could potentially blow past the iPhone. Yesterday's announcement at the CTIA Wireless show by Sprint (S) about the first U.S. 4G smartphone built by HTC and running Google's (GOOG) Android brought this into clear focus.

Remember that Apple has sued HTC, largely as a proxy to reach Google and Android? Here's why. Sprint's announcement was of an HTC handset running Android 2.1 that's compatible with both 3G and 4G networks. Here are some of the other features:

Two cameras, main one being 8 megapixel and another 1.3 megapixel for video conferencing
4.3-inch screen
Wi-Fi capable with the ability to act as a mobile hotspot for up to 8 devices
external HDMI connector to display 720p video and images on an external monitor
both motion and proximity sensors
digital compass

But most important is the claim to 4D data network speeds where available. Suddenly, Android can do something that the iPhone simply can't. Not just because of AT&T's network, but because the device simply doesn't have the ability. This isn't the first time that other handset vendors stretched ahead of Apple in embracing new capabilities. For example, the iPhone 3G was hardly the first product that could work on the faster networks. But this is the first time that an Android-based phone has clearly taken such a lead. Given that Android handset shipments have been on track to surpass iPhone sales within the next year or so, this can't be comforting news for Apple.

To be fair, there are rumors that Apple will release an iPhone 4G model as early as May. There's only one problem with the scuttlebutt: At the moment, AT&T doesn't support a 4G network. In fact, it's still building out its 3G service. Early in 2009, the carrier announced a 2011 4G network rollout with trials starting in 2010. In fact, Verizon (VZ) talks about rolling out a 4G network late this year, with handsets to follow next, as AT&T tries to downplay its competitor's advance. It seems that Apple would have to jump to Sprint to get a 4G model really selling this year (Who's going to upgrade if AT&T won't support it for many months?), and that seems highly unlikely.

For now, Google and HTC -- and who knows what other handset vendors using Android -- have gained significant momentum. No wonder Apple wants to slow them down.

Related BNET Coverage:

Chris Morrison - Sprint and T-Mobile Seek to Compete With Beefed Up Networks, Handsets Image: courtesy Sprint