From the start, the iPhone grabbed headlines and mindshare of cell phone junkies, Apple fans, and even many non-tech-heads, and it continues to do so with the explosion of the App Store. With literally thousands of apps available that can help iPhone owners do everything from learn a foreign language to nap on the train without missing their stop, the pressure is on other smartphone makers to keep up. Last winter, Google stepped up to join the fray and announced its own open-source mobile platform and gained the participation of a number of smartphone hardware manufacturers and mobile service providers. Google’s bold plan is coming to fruition tomorrow with the announcement of the first Android handset that will be available through T-Mobile.

How will this impact Apple and the iPhone platform? It’s far too early to tell yet, but it will definitely offer some competition, and free market theory indicates that this should push improvements in quality and price among competitors over time. The important thing to note is that Android is open source and there’s no NDA governing its use, nor will there be an approval process governing the release of apps. This is in stark contrast to Apple, who has come under fire lately because of their decisions to reject some apps recently (PodCaster and MailWrangler), while other, arguably less useful, apps were approved and available from day one. Also, Android’s app distribution will not be limited to their app store, the Android Marketplace - developers will also be able to distribute their Android apps directly to users, compared to the iPhone’s App Store that acts as the only distribution point for 3rd party apps to users, period.

We don’t have a firm date yet for the go-live of the Android Marketplace, but it will definitely be interesting to see the breadth and number of apps that will be available, particularly in comparison to Apple’s App Store. Will it prompt Apple to change their practices for their App Store in terms of the approval process and app distribution? But even before this, will the Android handsets be innovative and intriguing enough to rival the iPhone? The first purported spy pics of a bland white Android handset with a slide-out keyboard and large touchscreen don’t seem to indicate this will be the case. The thing about the iPhone was that it was downright sexy and sleek from the start and most were drawn to the device first, with the App Store coming a full year after the release of the first iPhone. Regardless, these are interesting times in the smartphone world, and this event bears some watching and we can all hope that the competition will make the iPhone experience even better. You can catch full coverage of tomorrow’s Android event at everythinggPhone.com.