Sprint's new Android phone a threat to Palm

Sprint (S) revealed that it will launch a new phone using the Google (GOOG) mobile software system. The handset, the HTC Hero, is built by one of the largest cell phone manufacturers in China.

Google, which has faced relatively modest acceptance of its Android handset operating system, was more than a little bit excited by the announcement of the deal. In a press release the firms said, "HTC Hero is the first U.S. device to feature HTC Sense, an intuitive experience that was built with a guiding philosophy to put people at the center and allows the device to be completely customized to the wants and needs of the user."