Sorry. AT&T Doesn't Sell an Android Phone Yet. Can I Interest You in a Windows Mobile Device?

The first Android phone intended for AT&T may be scrapped before it’s ever released. Developed by HTC, the “Lancaster” had been scheduled to arrive at market this summer. But industry sources tell DigiTimes that the device hasn’t yet passed AT&T’s (T) validation process and will be delayed or perhaps even abandoned. Engadget has heard a similar story.

Interestingly, HTC recently said that its 2009 revenue would decline, after earlier forecasting a 10 percent increase. The reason for the fall? Delays in product launches.

Coincidence? Tough to say. One thing’s certain, though: If the Lancaster has been delayed or ends up being scrapped, it’s bad news for HTC, which will soon face increased competition from Motorola (MOT), Sony Ericsson and other handset vendors developing phones for Google’s (GOOG) Android.