Updated 15th June 2011.
It looks like HTC has changed their mind and the update is back on, full details here.
Bad news for owners of the original HTC Desire, as HTC has announced that they wont be releasing an official Android 2.3 Gingerbread update for the original HTC Desire.
According to HTC the reason that the update has been cancelled is because the HTC Desire doesn’t have enough memory to run Android 2.3 Gingerbread and the HTC Sense UI.
Our engineering teams have been working hard for the past few months to find a way to bring Gingerbread to the HTC Desire without compromising the HTC Sense experience you’ve come to expect from our phones. However, we’re sorry to announce that we’ve been forced to accept there isn’t enough memory to allow us both to bring Gingerbread and keep the HTC Sense experience on the HTC Desire. We’re sincerely sorry for the disappointment that this news may bring to some of you.
Of course you can still get Android 2.3 Gingerbread on your HTC Desire, it just wont be the official HTC release with the HTC Sense UI.
Source Android Central
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