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So why 800 x 480 rather than 854 x 480?

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Here are my guesses for why they chose this particular resolution:

1) The squarish 800x480 is more like the iPhone screen and provides similar benefits such as: a) it provides more "real estate" in profile mode. This obviously helps with typing accuracy for the profile keyboard; b) You can also see more of a web-page in profile mode, compared to a similar 3.7" 854x480.

2) HTC may have chosen the 800x480 because it's the same resolution they used for the HD2 (although smaller).

3) AMOLED is a relatively new technological implementation and likely do not have a bounty of suppliers. The Samsung Omnia II is the only other AMOLED phone that boasts the big 3.7" size and is the same resolution: 800 x 480. When the Omnia II came out, it was the largest AMOLED screen available on a phone. That is, until the N1 came out, sharing the same screen. There are two prominent OLED/AMOLED suppliers: Samsung being one, and TPO being the other. And by the time the N1 was manufactured, there were only two AMOLED suppliers mass producing AMOLEDs of 3.x" size: Samsung Mobile Displays and TPO. Only Samsung has 4.x" >>HD<< AMOLED even in planning for Mobile phones.

Note: Checked... The AMOLED is by SMD. They only had one 3.7" in mass production at the time of the N1's build @ 800x480. In fact, it's the same exact screen in the Omnia II released previously to the N1.
 
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