The buzz surrounding the upcoming launch of T-Mobile’s HTC G1 phone reached new heights, as the preorders managed to completely exhaust the stock prepared by the two companies. The sales target set for this year was estimated at around 700,000 units, and this was considered an optimistic result.

As soon as the initial 500,000 batch was preordered, T-Mobile made a second order for another 1 million units. It only took customers a few days to finish this second stock, significantly exceeding the companies’ expectations.

At this point, the market seems to be focused on these smartphones and the demand is bigger than ever, which will also lead to a good outcome for other manufacturers such as Research in Motion with its BlackBerry Storm and Nokia with its 5800 device. The market still has a lot of room for new releases, as up until now the touchscreen smartphone segment included only the iPhone and many were wondering why there aren’t any other options to choose from.

The reason why the G1 device received this massive media coverage is mainly related to its Android operating system, which represents Google’s first effort in the mobile market. The company announced that the new OS will provide a whole different experience, ensuring an easier access to the phone’s features and a faster response to its commands. The Android operating system is a software platform based on the Linux OS that was unveiled on November 5, 2007, along with the founding of the Open Handset Alliance, which is a 34-companies consortium aimed at advancing open standards for mobile devices.

It will offer an 3.2-inch HVGA touchscreen, a QWERTY keyboard, GPS, and Wi-Fi and it will also provide a microSD card slot and a 3.2 megapixel camera. It measures 4.60 inches by 2.2 inches by 0.60 inches, and weighs 5.6 ounces.

The Web experience will be completed with full access to many of Google’s products, such as Google Maps Street View, Gmail, YouTube and others. Aside from offering users a navigation tool that focuses on the routes they themselves have created (BreadCrumbz) and also a karaoke-like app that synchronizes lyrics to a video (TuneWiki), Google signed a deal with Amazon, enabling consumers to purchase or browse music via the Amazon MP3 store.

Apple also released a statement saying that it recorded sales of over one million units with its new 3G iPhone in the first weekend since its release, but T-Mobile’s figures are even more admirable as the HTC brand is not as popular as Apple. Also, another factor that should be taken into consideration is that there are surely many other people interested in the device and did not preorder one, so the sales should be even bigger.

The G1 phones are scheduled for release on October 22, through an exclusive partnership with carrier T-Mobile, and will cost $179 with a two-year contract. For now, the device will only be available in English, as the development process demands at least six months before releasing the versions in other languages.