iPhone users beware: you might not have the newest, hippest phone on the market any longer.

Google showed the world its answer to Apple’s iPhone by finally unveiling its Nexus One smartphone today during a press conference in California. Google Vice President Mario Queiroz said the phone has superior capabilities than current versions of smartphones, including the iPhone.

The touch phone, manufactured by HTC, weighs 4.6 ounces with a 3.7-inch screen and comes with SIM and Mirco SD slots, two microphones and a light sensor. It also has a tri-color clickable trackball, Bluetooth capability and a multi-color LED for notifications.

Its 5.0 megapixel camera beats the iPhone’s 3.0 megapixels and offers something the iPhone doesn’t- the ability to run multiple applications at the same time. The Nexus One’s hardware consists of Android 2.1 software which allows you to run multiple apps at once, something that Google claims the iPhone fails at. The updated Android software has fixed some of the common first version errors and works extremely well with Google Earth.

Sick of your old phone? You can purchase the phone unlocked for $529 and through T-Mobile for $179 with a two-year contract.

Deals with Verizon and Vodafone have been worked out and the phone will eventually be sold through these companies. For now, Verizon users can purchase Motorola’s Droid. Though it does not have Android 2.1, Google CEO Sanjay said to the press he thinks the Droid will eventually be updated to 2.1 software.

Picture credit: Portfolio.com