HTC and Telstra launched the Wildfire today, a new Android handset that targets anyone looking to spend under $500 for their next phone purchase. Featuring a 5 megapixel camera, GPS, WiFi 802.11b/g, 3.5mm headphone port, and Android 2.1 with Flash support for a price of $349 on prepaid, this looks like the new budget king.

We went hands-on with the HTC Wildfire handset in our video below.

While we didn’t have the longest play with the phone, it’s definitely an interesting little phone.

HTC looks at the Wildfire as if it’s the baby brother of the HTC Desire, and given the specs, we don’t blame them. Both the screen and the processor powering the Wildfire sit slightly under the Desire. You’ll grab a 3.2-inch screen on the Wildfire compared to the 3.7-inch on the Desire, and there’s a 528MHz processor on the Wildfire compared to the 1GHz (roughly twice as much power) on the more expensive HTC Desire.

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But aside from those two details, very little has changed. In fact, aspects of the lesser-priced Wildfire seem better. With the same Swype on-screen keyboard found on the Samsung Galaxy S and a caller ID that connects directly to Facebook updates, the HTC Wildfire certainly looks more desirable than other handsets on the market today.

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