Here's a 3.2" 480x320 resolution capacitive touch screen. Has an ARM11 600Mhz Qualcomm MSM7627 processor with Adreno 200 graphics acceleration (also called AMD z430) it has smooth Android 2.2 support. The really cool thing is you will be able to buy this in ever super market, CVS Pharmacy, Wallgreeens, for $150 with no contracts required, it uses the pre-paid Virgin Mobile network. And the same phone is also available as "LG Optimus M" on MetroPCS (seems to be $229 on there no contract required) and it's also on Sprint and T-Mobile, but I don't know if those networks offer pre-paid plans with no contracts required.
As more and more Android phones reach sub-$150 pricing on pre-paid plans, this is becoming a big deal, especially when those get to approach or overtake the 3.5" capacitive form factor, most consumers might think the experience with Android on those is just as good as any iPhone or other expensive Android phone on 2-year $2400 contracts, this is a big deal, look forward to more on cheap Android phones leading up to my Mobile World Congress coverage.
This video was published at mobiletechreview.com
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