Google Nexus One into online retail

Bangalore: Google's Nexus One has propelled the Internet search engine company into online retailing for the first time, reports Business Week.

Google yesterday started selling the Nexus One, a phone manufactured by HTC, that uses the Android mobile operating system. Google will also offer other devices that use Android, such as phones from Motorola. By selling directly, Google can forge closer ties to consumers, allowing the company to offer other products and services in the future, said Will Stofega, an Analyst at Massachusetts-based research firm IDC.

Offering a range of Android phones may additionally boost the development of applications for the software as Google tries to catch up with Apple. "Once they hold the customer relationship, the opportunity to make money off this relationship increases exponentially," said Stofega.

Nexus One will be carried by T-Mobile USA, and the device will be available on Verizon Wireless later this year. The phone is also available without a contract.

Motorola, which already sells phones based on Google's Android, is however not concerened about Google's plan for online commerce. "We just see this as another way of getting to consumers," said Sanjay Jha, Co-Chief Executive Officer, Motorola, at Google's event. "I don't see this as a threat; this is potentially an expansion of the marketplace."

Google has said that its store is designed to encourage adoption of the Android operating system and benefit wireless carriers that support the Nexus One. Providing customer service to buyers who are having problems with their phones can be a challenge. Google said yesterday that it's in talks to get other carriers onto its site.

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