Google unveils iPhone rival, prices

AP

Google's Nexus One smartphone.

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It's official: Google will sell its own mobile phone in an effort to protect its online advertising empire as people increasingly surf the web on handsets instead of personal computers.

The phone announced Tuesday had been widely anticipated since Google handed out the device, called the Nexus One, to its own employees three weeks ago.

In the US, people will be able to buy the Nexus One for US$179 (NZ$243) if they commit to a two-year service contract with T-Mobile USA. The phone is going on sale Tuesday (US time) online.

The phone will run the 2.1 version of its Android operating system software and will feature a 3.7-inch (9.4 centimetre) touchscreen display.

Google worked closely with HTC to develop the phone, which uses a 1 gigahertz Snapdragon processor from Qualcomm The Nexus One is 11.5 millimetres thick and weighs 130 grams, the company said.

Google also will offer versions of the Nexus One that will give people the option of selecting the wireless networks of other major US carriers. That's a departure from the way most mobile phones have been sold in the US.

The price of these so-called "unlocked" phones will be US$529 (NZ$718).

Verizon Wireless in the US and Vodafone in Europe will begin offering subsidies on the Nexus One this spring, according to Google executives.

The Nexus One escalates Google's budding rivalry with former Silicon Valley ally, Apple, which has sold more than 30 million iPhones in the past 2 1/2 years.

- With Reuters

- AP