Today Motorola officially announced the MILESTONE XT720, an Android 2.1 powered smartphone. The device is the follow-up to the original MILESTONE, which launched as the Motorola DROID on Verizon Wireless in the United States.

The MILESTONE XT720 comes equipped with an 8 megapixel camera and is the first Android powered smartphone to be equipped with a xenon flash. The MILESTONE XT720′s camera is also capable of recording 720p video, and has autofocus as well as 10x digital zoom. The phone even comes with an HDMI cable for outputting video and images to an HD television.

Unlike the original MILESTONE (DROID), the XT720 doesn’t have a full QWERTY keyboard and instead relies on a touchscreen QWERTY only. That shouldn’t be a problem thanks to its large 3.7 inch 854 x 480 resolution display. The phone also comes with an 8GB microSD card that can be swapped out by the user for a larger 32GB card, if need be.

Motorola did not discuss when the MILESTONE XT720 would be available, and also did not detail pricing.