Motorola, the world's third-biggest phone maker, unveiled a touch-sensitive phone to be sold by Verizon Wireless, as both companies look to compete with Apple's iPhone.
Motorola has been losing ground in the cell phone market as it has failed to come up with a hit phone to replace its once-lauded RAZR.
The company said the Krave ZN4 is available for $149.99 after rebates to customers who sign a two-year contract with Verizon Wireless.
The Krave has a see-through cover that flips open to uncover a touchscreen virtual keypad. But users can also access popular features such as mobile television and navigation by pressing their fingers on the cover without opening the phone.
For several years, Motorola has sold a touchscreen phone called the Ming that has been popular in China, but it has focused on phones with physical keypads in the United States, where it is the market leader.
The popularity of iPhone — a touchscreen phone sold exclusively through AT&T in the United States, the largest wireless carrier in the nation, has led rivals such as Motorola and Verizon Wireless, to come up with touchscreen alternatives.
The iPhone will also face competition from Google's Android phone, the G1, which will go on sale Oct. 22, and be carried by T-Mobile. The phone costs $179.