Updated August 10 to include news of the launch.

Motorola has refreshed its original Droid phone with the new Droid 2, a device that promises a better keyboard, the latest Android 2.2 Froyo operating system and a faster 1-GHz processor.

Droid 2 will cost $200 with a two-year contract on Verizon Wireless (and after a $100 mail-in rebate) or $600 without a contract, according to Best Buy.

The Droid 2 refresh comes nearly ten months after Motorola and Verizon launched the original Droid phone. In October last year, the two companies introduced Droid, then one of the most advanced Android devices in the market. The Droid debuted with a 3.7-inch touchscreen display, a slide-out keyboard, a 5-megapixel camera and a 600-MHz processor. Since then, the device has become one of the best-selling Android phones.

In June this year, Motorola announced Droid X, a device that extended the Droid brand. The Droid X, however, didn't come with a keyboard. With its 4.3-inch touchscreen, the Droid X also sports a bigger display and a faster processor compared to the original Droid.

Droid 2 will now catch up to some of those specs. One of the key criticisms with the original Droid phone was the device's keyboard. Many users complained that the keys weren't comfortable to use. Motorola seems to have heard that. In a newspaper ad touting the imminent arrival of the Droid 2, Motorola highlighted the Droid 2's "new, advanced keyboard."

Droid 2 will also be the first phone to ship with Android 2.2 Froyo and support Adobe's Flash technology for mobile phones – a distinction that shouldn't matter much now since other devices including HTC Evo and even the original Droid are getting over-the-air upgrades to Froyo.

Another point to consider is that the feature upgrades won't put the Droid 2 at the front of the pack of Android phones. HTC's Evo has an 8-megapixel camera, compared to Droid 2's 5 megapixels. The Evo also has a front-facing camera and HDMI out – two features that are missing in the Droid 2.

The Droid 2 will also come with 3G hotspot capability for upto five supporting devices but that feature will cost an additional $20 a month.

*Photo: Droid 2/Motorola *

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