The Touch Diamond2 was an important product for HTC, as the first-generation Touch Diamond device failed to live up to the high expectations set when it was announced. HTC had learnt lessons from the first Touch Diamond and made significant improvements to the TouchFLO user interface software.
HTC stated that it's device and interface design had been updated to revolve around the concept of "people-centric communication". This was an ambitious goal, given the shortcomings of Microsoft’s Windows Mobile 6.1, and required HTC to undertake significant additional software development on its TouchFLO software, which it claimed had "bone deep" integration with Windows Mobile. This saw the TouchFLO UI being reflected in Microsoft applications such as Outlook's calendar.
Two key innovations on the Touch Diamond2 were push-Internet and an integrated address book. Push Internet was a simple, but effective service that cached Web content for users. When bookmarking websites, users could mark them as "zero wait" pages. Once selected, these pages were cached at a predefined time so that when the site was accessed the cached page appeared instantly.
The integrated address book was a clever innovation that allowed users to access recent text messages, call logs, e-mails and calendar events from an individual's contact record. This echoed efforts by other manufacturers at the time, such as INQ Mobile and Nokia, to make address books more capable.
The 3.2-inch resistive touch-screen display on the Touch Diamond2 was larger than the screen on the first Touch Diamond device. HTC had also added a touch-sensitive zoom-bar, a five-megapixel camera and a microSD slot. The company claimed to have increased battery life by 50 percent, addressing one of the major shortcomings of the original product.
These new devices underlined HTC's continued commitment to Windows Mobile at the time, despite its growing interest in Android products. At the time, Windows Mobile devices delivered most of its revenue. For Microsoft, the Taiwanese manufacturer had been one of its most prolific and innovative manufacturing partners, helping it to promote and develop its mobile devices operating system.