The company said that 1 million devices had been sold to date. The new phone is a touch-screen, slab-style smart phone that promises better connectivity. The feature-rich phone has 3.2", 320x480 touch screen, 3.2-megapixal camera, built-in video recording and playback capabilities as well as MicroSD memory card slot.

the main difference between the Google Ion, also called HTC Magic and the new phone is the absence of the physical QWERTY keyboard, which has been replaced by a on-screen keyboard.  Weighing 4.1 ounces, the MyTouch 3G has 512 MB of internal memory as well as 4GB in the box memory. Consumers may not prefer this since the new iPhone has 8GB and is actually cheaper.

A 1340mAh battery will complete the picture and give the phone six hours of talk time.  The MyTouch 3G also has Microsoft Exchange support. Other features include a headphone adapter, protective case, travel charger and support for 3G and Wi-Fi networks.

The new device will be available for $199 for existing T-Mobile customers ion July 8. New customers will get the MyTouch in August along with a two-year T-Mobile contract.