After the announcement of the iPhone 3G this week, you'd think Windows Mobile heavyweight HTC would fire back with at least some sort of Touch Diamond or Touch Pro salvo.

But in talking to Digitimes on Wednesday, CEO Peter Chou lobbed what amounts to underpowered spit wads, putting the $199 HTC Touch in the ring with Steve Jobs' latest.

The bundled prices of HTC Touch handsets in most markets in Europe as well as Japan and the US are set below US$199 in part due to subsidiaries offered by telecom carriers, said Chou, noting that mobile operator Orange offers the HTC Touch free of charge on some contracts.

Hey, the Touch - or its recently released cousin Touch Dual - is no slouch, especially at that price point (at least it was until Monday). But if you're going toe to toe with Mike Tyson, you'd want your best fighter lacing up his gloves, right?