Slideshow: Seeking the Ultimate Smartphone

Even if you don't "Google" it, a web search for the latest hot smartphone is bound to turn up the search giant's inaugural entry -- HTC's T-Mobile G1.

The "Google phone," as it's more commonly known, is set to hit stores on Wednesday. Priced at $180 (with a two-year contract), the G1 integrates Google's (GOOG) easy-to-use Android operating system with a sleek touchscreen handset made by China's HTC that includes a full slide-out keyboard and fast 3G network capabilities. By analysts' presale estimates, the G1 is a serious contender to meet -- or beat -- the first-generation Apple (AAPL) iPhone's track record of selling one million units in fewer than three months.

The G1's debut shows just how far the smartphone market has come since Apple first launched the iPhone in June 2007. Smartphones are now twice as popular as they were this time last year, reports market researcher NPD Group. And, as competition among handset makers heats up, prices continue to fall and once high-end extras, such as MP3 players and web browsers, are increasingly being considered standard.

In the months ahead, a slew of new high-end handsets will join Google's smartphone. Among them: Research in Motion's (RIMM) much-anticipated BlackBerry Storm, the Sony Ericsson Xperia X1 and Motorola's Krave.

With so many options to choose from, shoppers will need to decide what features will meet their wants and needs. "There will always be something newer, faster, better, sexier," says Gartenberg. "Make sure you can live with that device for the two years [of your contract]."

It's equally important to assess the service providers coverage and plans before signing on, advises Dan Havlik, editor of tech education site DemystifyingDigital.com. That fancy new phone won't do much good if the carrier offers spotty coverage in your area or if the unlimited data plan the phone requires takes a toll on your monthly budget.