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IDG News Service - HTC Corp. today announced the HTC Touch Diamond, a smart phone running Microsoft Windows Mobile 6.1 Professional and with a touch screen designed for one-handed use.

The new handset is the next generation of HTC's popular Touch smart phone, which has sold more than 3 million units in the 10 months since its launch. The Touch Diamond updates the series to 3G (third-generation mobile telecommunications), beating rival Apple Inc. to the punch again.

Last year, HTC launched its first Touch handset nearly a month ahead of the iPhone. The Touch Diamond will be available throughout Europe starting in June, followed by Asia and the Middle East. The handset will hit North and South America in the second half of the year.

Apple has not said when it will launch a 3G iPhone, but industry analysts expect one within the next few months.

The HTC Touch Diamond works on WCDMA (Wideband Code Division Multiple Access) networks and offers data rates up to 7.2Mbit/sec. using HSPA (High Speed Packet Access), thanks to a chip set from Qualcomm Inc.

HTC CEO Peter Chou is so excited about the Touch Diamond that he predicts it will be an even bigger seller than the original Touch. "This is going to be the biggest product of my life," he said by phone from London.

HTC's focus on improving touch-screen technology on the Touch Diamond's 2.8-in., 640 pixel-by-480 pixel display pays testament to how serious it is about competing against the iPhone.

The company revamped its TouchFlo software to give a 3-D effect to screen images. Consumers can use push-e-mail and can access photos, music and messages, and more on the touch screen.

The company also upgraded the Web browser, which is built on an engine from Opera Software ASA but was designed specifically for HTC. The browser fits the screen, and users can zoom and pan Web sites with one hand. Turn the device sideways, and the view automatically rotates as well.

The Touch Diamond includes customized applications for watching YouTube videos and using Google Maps for map and traffic data. The handset also has a GPS receiver.

The 3.2-megapixel camera with auto-focus allows video-calling.

Despite the big screen size, camera and other features, the Touch Diamond is small, just 102 millimeters-by 51mm-by-11.33mm.

The HTC Touch Diamond also boasts Bluetooth for wireless data transfer and Wi-Fi 802.11b/g for wireless Internet access. The battery on the device is rated for four hours of talk time.

However, one area where the iPhone still has the edge is in data storage: the Touch Diamond has only 4GB of flash memory for storing music and videos, compared to the iPhone's 8GB or 16GB.