After a few unsuccessful attempts of releasing GSM phones, Mio has just decided to hit the mobile market hard by releasing a 3.5G touchscreen-based GPS phone right after the New Year’s Eve.

According to some rumors the handset will wear Qualcomm’s 3.5G chipset along with Mitac’s "Spirit" touch interface. Also, it will come equipped with a 3.2-megapixel camera, a 7- or 8-inch panel, 3G radio and Windows CE OS.

If we’re lucky, we’ll see this new Mio baby in stores before Q1 2009 ends. We’ll keep you posted with more information on pricing and release date.