The cupcake update, originally hinted at in December, is expected to add video recording and playback, features the G1 has lacked. It will also add an on-screen virtual QWERTY keyboard, so users don't have to rely solely on the physical keyboard and can use the touch-screen to type. Other new capabilities expected from cupcake include Bluetooth stereo support; browser updates like copy, paste and quick search; and the ability to save MMS attachments.
T-Mobile confirmed the software update is coming.
The cupcake update is also expected to become standard when HTC launches the second Android phone, the HTC Magic, which has become known as the G2, later this year on Vodafone.
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