Verizons Iphone Challenger Goes On Transaction Nov. 6


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The Droid could help Verizon retain its status as the nations largest wireless carrier and contribute to a turnaround of its manufacturer, Motorola Inc., which hasnt produced a hit since the wildly popular Razr phone in 2005.

The new device also could give a boost to Google Inc., which used the Droid to unveil new mapping software that could challenge standalone navigational devices, sending GPS gadget maker Garmin Ltd.s stock plunging after Wednesdays announcement.

Although the Droid wont be first challenger for the iPhone, which is available in the U.S. only to subscribers of AT&T Inc., Verizon has thrown its largest marketing campaign ever behind the new device with television commercials and other ads. Verizon has been pointing out the features Apple Inc.s iPhone lacks, such as a physical keyboard and the ability to run several applications at once.

Verizon is targeting 15- to 35-year-olds who are highly engaged with their gadgets for social networking, blogging and other online tasks. Social networking is integrated throughout the device. That means you can sync Facebook friends into your contacts and share photos on Picasa without having to go through separate applications.

“Apple revolutionized the industry,” and the smart phone industry needed time to collect itself and figure out its next move, John Stratton, Verizons chief marketing officer, said at a launch event in New York. With the Droid, Verizon and Motorola are hoping to shatter any perception that the iPhone is the end-all of mobile devices.

Verizon, the Droids exclusive U.S. distributor, will start selling the phone Nov. 6 for $199.99 after a rebate, with a two-year contract. The price is comparable to the iPhones basic model.

With the Droid, Verizon is tapping into the frustrations some users have with the iPhone. Users have complained of dropped calls, while many software developers hate Apples requirement that it approve all applications running on it ahead of time. The Droid runs on Googles Android operating system, an open platform that any developer can customize.

The Droid is a sturdy, angular device, with a standard, “QWERTY” keyboard that slides out, though you can also pop up a virtual on-screen keyboard with tactile feedback so it bumps back a little when you tap out the keys.

It has a five-megapixel camera – better than the iPhone – and a tiny flash, along with voice-activated search that brings up your contacts and location-based Google search results. Say “pizza” and nearby pizza restaurants will pop up.

The Droids display is slightly larger than the iPhones, and its claimed talk time on a single battery charge is a bit longer – 6.4 hours, compared with the iPhones five hours.

The Droid is heavier and thicker than the iPhone. Because it incorporates the slide-out keyboard, it lacks the iPhones all-in-one sleekness. The corners arent as softly rounded, and even Stratton noted its target market may skew a little masculine. Its the Rolling Stones to the iPhones Beatles. And, of course, no iTunes.

Google is also throwing its weight behind the Droid, which is the first smart phone to run Android 2.0, the latest version of the system.

The free application, called Google Maps Navigation, will only work on devices running on Android 2.0 – an exclusive distinction for now. But Google plans to make it compatible with other systems and devices, including the iPhone and the BlackBerry from Research in Motion Ltd.

Shares in Garmin, based in the Cayman Islands with headquarters in Olathe, Kan., fell $6.19, or 16 percent, to close Wednesday at $31.59. Apple, which is based in Cupertino, Calif., lost $4.97, or 2.5 percent, to $192.40, while Dallas-based AT&T gained 48 cents, or 1.9 percent, to $26.08.

Verizon Communications Inc., which owns a majority stake in Verizon Wireless in a joint venture with Vodafone Group PLC, gained 75 cents, or 2.6 percent, to $29.95. Shares in Google, which is based in Mountain View, Calif., were down $7.99 to $540.30, while Motorola, based in Schaumburg, Ill., gained 6 cents to $7.96.

Associated Press Writer Michael Liedtke in Mountain View, Calif., contributed to this story.

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