Taiwan's High Tech Computer Corp., which makes the HTC Touch, said on Friday its touchscreen phone would retail for a recommended 450 euros ($599) if sold without a contract.
Apple plans to start selling its much-hyped iPhone in the United States for $500 or $600, depending on the amount of memory it contains, from June 29.
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It eventually plans to sell the iPhone in Europe and Japan but has not announced specific dates or prices. AT&T (T) is the only operator with rights to sell the iPhone in the United States, and the phone will also be available in Apple stores.
The HTC Touch will come with 1 gigabyte of memory for storing video, music and photos — enough for about 250 tunes — compared with the iPhone's 4 or 8 gigabytes.
HTC has begun selling the HTC Touch in Taiwan and Britain and will extend that to the United States later this month.
It has sold a better-than-expected 60,000 of the phones so far this month and JPMorgan expects it should be able to ship 2 million between July and December.