London - HTC HD2, which boasts of amazing features such as a whopping 4.3-inch WVGA capacitive touchscreen with 480x800 resolution display; a 5-megapixel camera with autofocus and dual LED flash; and an ultra-powerful Qualcomm 1Ghz Snapdragon processor, has been taken off Vodafone's shelves.

A Vodafone official said last week that it has depleted its HD2 stock and will not be restocking the smartphone for general customers anymore.

Now, this is shocking news as Vodafone was the first of the leading network operators to sell HD2 and at the time of its launch in November, a top Vodafone executive the company is hoping that the early launch advantage will work in its favour and will enable it to generate huge sales and win many customers.

So, the sudden turnaround could mean only one thing - HD2 has not generated as much sales as Vodafone expected.

However, according to some industry analysts, there are two other possible explanations - [1] Vodafone wants to focus all its attention on iPhone's launch in 2010. Despite Apple terminating its exclusive deal with O2 earlier this year, rival Orange stole a march over Vodafone by bagging the rights to sell iPhone from this year itself whereas Vodafone could only manage a deal that would allow it to sell from 2010. Hence, Vodafone is not keen on taking any further risk. [2] Vodafone's own mobile phone brand 360, which is manufactured by Samsung, is probably not selling too well and Vodafone wants to focus more on that.

When contacted, a company source said the primary reason for Vodafone to take HD2 off its shelves was because the smartphone was facing software glitches and Vodafone did not want its customers to have "an adverse experience."

"HD2 was selling very well and by first week of December, we ran out of stock," the source said. "However, we are not ordering new stock for general customers and will rather focus on newer smartphone launches."

"Although we understand our consumer customers will be disappointed, looking at the range of smartphones we have, and with more coming over the next few months, including the iPhone, we're confident that the range of handsets we have in the pipeline will offer more than enough options to pick up a great handset," the source said.

And, yes, Vodafone has nothing against HTC. "We will continue to offer the broadest range of devices to our customers, including HTC phones," the source said.

Vodafone's decision came as music to O2 and T-Mobile's ears as it means one less rival is selling the popular device. Not surprisingly, moments after Vodafone announced its decision not to re-stock HD2 for general customers, its rivals said they will continue to sell the device for general public as they are witnessing strong demand.

Phew! That's a relief.