Technology Blog

Google Starts Selling Nexus One in Competition With iPhone

Google Inc. has started selling a version of its Nexus One phone that runs on AT&T Inc.'s 3G network, putting it in direct competition with Apple Inc.'s iPhone.
The original version of Google's phone, which was released in early January and is still on sale, worked on Deutsche Telekom AG unit T-Mobile's 3G network and AT&T's older, slower network. The newer version, which became available for sale on Google's Web site Tuesday, supports the different frequencies that AT&T uses for 3G.




AT&T's involvement in the new Nexus One appears to be minimal, however. The carrier isn't selling or subsidizing the phone, so it's only available from Google at its full price of $529. That's far more than the $179 buyers would pay for a Nexus One subsidized by T-Mobile or the $99 starting price of an iPhone subsidized by AT&T. Both of those deals require two-year contracts.
"We'll accept a compatible device on our network," AT&T spokesman Fletcher Cook said. He wouldn't say whether the carrier and Google had discussed the new phone.
"We have been sharing our plans and progress with AT&T for several weeks," a Google spokeswoman said. "We are also making good progress on integrating operators such as Verizon and Vodafone into the program."
Google's move into phone hardware has put it on a collision course with Apple. Earlier this month, Apple sued Nexus One manufacturer HTC Corp. for patent infringement. The iPhone maker didn't name Google as a party to the suit, but analysts say that the HTC lawsuit could be a proxy battle between the two Silicon Valley giants.

(from internet)