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Computer giant Acer is developing an Android phone to be launched later this year, it has been revealed.

The company’s president and chief executive Gianfranco Lanci confirmed his intention to enter the market for phones running on Google’s powerful operating system at an investors’ conference in Taipei yesterday.

He told attendees: “The entire industry is looking at Android. We are testing Android on a lot of different solutions.

"We are working on an Android solution for the smartphone, [but] I think it's too early to say if we're going to see Android on a netbook in the near future."

News of Acer’s Android-powered handset comes as a number of mobile phone companies are planning to launch rival devices this year.

These include Sony Ericsson, which is expected to unveil its handset this summer, and Samsung whose I7500 was confirmed for release earlier this week.

Currently, the only Android handset available in the UK is the one million-selling T-Mobile G1.

However, this is soon to be joined by the HTC Magic on Vodafone, which is now due to appear on May 1st.

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