A new report said HTC handsets featuring Google's Android mobile operating system will be delayed from the fourth quarter 2008 until the first half of 2009.

According to Barron's Tech Trader Daily, analyst Trip Chowdhry said handset manufacturer High Tech Computer is "having structural problems to incorporate Google's demanded feature set."

Chowdhry, of Global Equities Research, also said HTC is asking for guaranteed minimum revenue from Google, as the handset company is unsure that there will be significant demand for Android-powered devices.

Developers are also increasingly turning away from Android, Chowdhry said, as they're being drawn to established platforms like Symbian, Windows Mobile, or Apple's iPhone.

Representatives from HTC have denied the report.

Google did not comment on the specific report, but a Google spokesperson said, "We remain on schedule to deliver the first Android-based handset this year and we're very excited to see the momentum continuing to build behind the Android platform among carriers, handset manufacturers, developers, and consumers."

Google introduced Android last November with the goal of creating an open and comprehensive platform for mobile devices. Since that time, there have been multiple reports of delays, developer dissatisfaction, and possible mergers.

But Google maintains that the Linux-based OS is on track to be rolled out in the fourth quarter. At the LinuxWorld conference in San Francisco, Eric Chu, marketing manager with Google's Android group, said the core operating system was about 80% complete.

Time to market may be an important factor for Android, as it will be a stiff challenge to displace established players.