HTC needs to seriously reconsider its pricing strategy for the Desire S because the newly released handset is comparatively expensive compared to its more established bigger brother, the Desire HD especially as it will be released in April 2011, two months from now.
The issue here is that the HTC Desire S is a smaller version of the Desire HD with a slightly better battery and Android 2.3 Gingerbread; it is not, as some have mentioned, the latter's successor.
What's more, the Desire HD can be had for almost the same price, unlocked and comes with the same (or better) hardware.
It has a bigger screen, more internal memory, a better 8-megapixel camera but doesn't, like the HTC Desire S, include a front facing camera or a better battery life (a third longer talk time in 3G for example).
But then, the dilemma is whether it is worth paying for a new handset when a better, albeit older, version is available; the HTC Desire HD can be had for as little as £25.54 per month on an 18 months contract on T-Mobile.
That's a total cost of ownership of less than £460 or, to put in another way, £40 more than the SIM Free price of the HTC Desire S or just over £2 per month for 300 minutes, 300 texts and "unlimited" internet booster which ain't too shabby.