Google, T-Mobile Unveil $179 G1, Challenging IPhone

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T-Mobile USA Inc. showed off the first mobile phone to run on Google Inc.'s Android software in New York today, challenging the iPhone and BlackBerry.

The G1, which has a touch screen and a slide-out keyboard, goes on sale in U.S. stores Oct. 22, the companies said. The device will cost $179 with a two-year contract, compared with $199 for Apple Inc.'s iPhone 3G, which uses AT&T Inc.'s network.