The HTC Magic’s camera at 3.2 megapixels is much the same as iPhone  and both suffer compared to Nokia’s N97, with its 5 megapixel quality with dual-LED flash and Carl Zeiss optics.

The HTC Magic has a MicroSD slot for extra storage up to 16GB; however, the new iPhone 3GS offers a 32GB version, while the N97 offers up to 48GB.

The iPhone Apps store beats the Android Market Place hands down with its sheer numbers and range of applications.

Apple has more than 30,000 applications to choose from compared to Android’s 3500. However, the Android Market Place apps have been praised by users for their edginess and good display.

Most applications are free or incur a low cost.

It is probable that once the use of Android smartphones becomes more widespread, the growth of applications in the Android Market will explode.

Android phones operate on an open source platform with the notable advantage of allowing anyone to write applications for the OS.

The developer can simply download their SDK (software development kit) and off they go.

The HTC Magic is available in both Vodafone and 3 mobile stores but they offer slightly different versions.

Vodafone offers built-in geotagging, over-the-air firm updates and an 8GB MicroSD internal memory card.

3 Mobile provides pre-installed support for Microsoft’s exchange email server and a 2GB MicroSD internal memory card.

With 3’s offer in the  $99 plan over 24 months, you get the phone for free including $1000 worth of call credit but you need to sign up the X-Series Ultimate pack of an additional $20 a month for one gigabyte worth of data downloads and 400 minutes of Skype. The handset is only available with 3 in black.

At $30 less, Vodafone offers a free HTC Magic under the $69 plan over 24 months including $400 worth of call credit and one gigabyte of data download. The phone is exclusively available in its white handset with Vodafone.

Similarly, Vodafone is offering Apple’s latest release iPhone 3GS (16GB) in a $69 plan over 24 months including the handset for free, $400 of talk time and one gigabyte in data allowance. This offer is almost identical to that of the HTC Magic.

Both Google Android OS phones released in Australia to date have been with HTC but this is set to change.

Already Samsung has announced the launch of its icon range next September which includes an open source Android powered touchphone called Galaxy. 

With reports that around 20 Android powered phones are to be available by the end of 2009, it seems the invasion has just begun.

There are a host of handset manufacturers signed up with Open Handset Alliance such as Sony Ericsson, LG Electronics and Motorola that could all possibly offer Android phones.

Although, Android phones have yet to make a much of an impact in the smartphone market, things look set to get very interesting.