The HTC Desire will apparently come with 720p encoding and support DivX content as well, which would put it on par with other members of HTC's smartphone portfolio.
The phone has the same capabilities as the HD2 which officially supports HD recording and shares exactly the same hardware features (The Desire has less memory and a smaller screen than the HD2).
Mobiletechworld learnt from HTC engineers that a firmware would be released soon; the Qualcomm QSD8250 processor that comes with the HTC Desire (and the Nexus One) supports HD recording natively.
The HD2 though runs on Windows Mobile 6.5 and there should be no reason why Android will not support it. It also opens the possibility that Google will offer the same feature on the Nexus one soon enough.
Other smartphones, like the Samsung i8910 Omnia HD, the Xperia X10 and the Vivaz Pro, already offer HD recording capabilities, something that has been become more popular because of use of the significantly more powerful Qualcomm hardware.
DivX playback is also an interesting feature that will make good use of the HTC Desire's 3.7-inch 800x480 pixel screen and will set it apart from rival platforms like the iPhone.