Google (NASDAQ:GOOG) sees opportunity in online retailing

With launch of its smartphone Nexus One, Google is all set to explore another business arena, online retailing of its mobile phones. This is for the first time the Internet search engine giant has propelled into selling a consumer electronics device.

Unveiling Nexus One, built to Google’s specifications and using its Android software by Taiwan-based HTC Corp., the company clarified that the phone will be sold directly by the company’s website instead of using retail outlets. Experts believe that the direct selling model will provide Google better access to its customers, which will act crucial when the company offers other products and services in the future. Google unveiled an official website where consumers, from the US and the UK, can directly buy the new phone without using any carrier.

However, users can also avail the phone with selected carriers, if they want to. Initially, Nexus One is available with T-Mobile service only and later with Verizon Wireless and Vodaphone Group in Europe.

Google’s online retailing intentions have now created the buzz that company may soon expand its Google-branded Android products portfolio rather than just selling Android software to manufacturers.

Meanwhile, leading technology research firm Gartner Inc. has predicted that by 2012 share of Android OS will be 14.5 per cent of the global smartphone market. With that market share, though Android will still be behind Symbian Systems used by Nokia, it will be much ahead of the iPhone and BlackBerry.

The company, however, also has its own strong plans to dig into the mobile Internet and advertisement market. For the same it has been investing hugely into a number of mobile-related firms. Acquisition of mobile advertising expert AdMob is the latest of the lot. The deal, which is yet to receive approval from the regulator, has charged up critics who believe it would give Google too much advantage.

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