Despite what Palm, RIM, and Microsoft might tell you, after this morning’s announcement by T-Mobile and Google, the fight for consumer interest will be between the new G1 Google Android-powered handset built by HTC and Apple’s super-hot iPhone 3G.

Even in its short life, the iPhone has already captured a sizeable percentage of the smartphone market, and that grab continues to rise. The iPhone is a very complete product and it offers a range of features that no other handset does. At least, not until now.

Just take a look to the left, and you’ll get a small idea of what the G1 is all about. A lot of people use Google for search, but millions use GMail and a Google Maps. Google’s Android, a Linux-based OS, was designed to work directly with these Google functions, and more.

If the rumored price of US$199 is accurate and T-Mobile is not subsidizing that and offers some more open plan options, Apple might very well have a good fight on their hands. At the very least, it should force Apple into offering updates which it has been claiming aren’t needed.

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