The ‘Donut’ SDK, version 1.6 of the Linux-based Android operating system, introduces a number of features that will enable Android-based devices to provide the functionality that users want. The improved search feature, multi-lingual text-to-speech function (dubbed Pico), and zippier camera speeds will be welcome.

Lets take a quick look at how Android ‘Donut’ will benefit users, developers, and mobile device manufacturers.

Users: The expanded support for higher screen resolutions is arguably the standout feature from a user perspective. It would have been of particular benefit to Motorola as it developed the Cliq.

The current Android devices, including the Cliq, default to 320 x 480 pixels. Android ‘Donut’ supports QVGA and WVGA standards, allowing resolutions up to 850 x 480 pixels. We can expect that future evolutions of the Cliq (and other Android devices) will include a larger display.

The battery usage screen is a cool touch as well. Rather than just an icon of a battery with some lines on it indicating how much charge is left, the Android ‘Donut’ battery meter screen actually displays which apps are running and how much power they are pulling so the user can shut down power-hogs to conserve energy and the battery life between charges.

Developers: The new Android Market provides a more robust platform for developers to create and distribute applications. Developers can include screenshots and descriptions to help promote applications. More importantly, the Android Market store allows users to browse apps based on most recent additions, top free apps, or top paid apps.

App stores are all the rage for mobile operating system platforms. All of these enhancements create a better experience for Android Market customers and provide a more effective outlet for Android developers to distribute their apps.

Device Manufacturers: CDMA baby! Android ‘Donut’ expands the market potential for Android-based devices exponentially by adding support for CDMA (Code Division Multiplexing Access) networks.

Android devices have been well-received and proven to be quite capable with providers like T-Mobile, but the market has been limited by the lack of CDMA. With Android 1.6, the potential market broadens to include Virgin Mobile, Sprint, and Verizon- the leading mobile service provider in the United States.

‘Donut’ could be a game changer for the Android operating system. The collection of features will impress users, the improved app distribution will attract developers, and the addition of CDMA will provide device manufacturers with more incentive to create Android-based devices.

With profit margins that are typically razor-thin to begin with, an open source mobile operating system platform that can deliver features and performance on par with more expensive, commercial platforms is a win-win-win for all parties.

The phone has a touch screen and a physical slide-out keyboard, a 5-megapixel camera, Wi-Fi, 3G connectivity, the ability to shoot video at 24 frames per second, a standard headphone jack and GPS capability. The phone will be available on T-Mobile’s network in the fourth quarter. Motorola officials did not disclose the price for the phone and would not let any attendees at the Mobilize conference, where they announced the phone, examine it closely.

“This is the first phone with social skills,” said Cole Brodman, chief technology officer at T-Mobile. “Cliq and Moto Blur is the start of the next chapter of Android and shows significance of the platform.”

The phone will also be available internationally under the name Moto Dext.

Motorola also plans to introduce another phone in the next few weeks, in time for holiday season sales.

Motorola needs a hit. Financial problems over the last two years have forced the company to slash its workforce. The company has said it will focus on creating Android-based handsets but this is the first glimpse of what the company has been working on.

The Cliq also helps establish momentum for the Google-designed Android operating system. Last October HTC and T-Mobile released the first phone based on the new OS. Since then HTC has announced three more phones that run Android OS. Other handset makers such as Sony and Samsung are also reportedly working on Android phones.

The new Motorola phone’s biggest asset will be its custom-designed user interface, Moto Blur.

“The Blur makes text, e-mail, Facebook, Twitter feeds and photos from sources like MySpace, Gmail, Yahoo and corporate e-mail appear in a single stream and sync them together with no different logins,” says Sanjay Jha, co-CEO of Motorola. “This means you can focus on what people have said instead of how and where they said it. ”

The Blur also backs up user contacts, log-in information, home-screen customizations, e-mail and social network messages on Motorola’s Blur servers. If you lose your phone, Motorola says you’ll be able to locate it through their online portal using the integrated GPS, and you can even wipe its data remotely. Both features are similar to what Apple offers iPhone users through the Mobile Me service.