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http://www.smallapple.net/blog/blog-201 ... _2010_4_22

Google abandoning online store for Nexus One smartphone

WASHINGTON - Google said on Friday it was closing down the online store for its Nexus One smartphone in a strategic shift that signals the failure of its bid to market the device directly to consumers on the Web.

The move comes just four months after the Internet search and advertising giant launched the touchscreen Nexus One as a rival to Apple's iPhone and the Blackberry from Canada's Research in Motion.

In a country where mobile phones are generally tied to specific wireless carriers - Apple with AT&T, for example - Google took a novel approach to selling the Nexus One - one that may have upset carriers.

'As with every innovation, some parts worked better than others,' Google vice president of engineering Andy Rubin said in a blog post.

'While the global adoption of the Android platform has exceeded our expectations, the Web store has not,' Mr Rubin said of the open-source mobile phone operating system that Google offers for free to handset makers.

'It's remained a niche channel for early adopters,' Mr Rubin said of the Nexus One store. 'But it's clear that many customers like a hands-on experience before buying a phone, and they also want a wide range of service plans to chose from.'

When Google launched the Nexus One, which carries the Google brand but is made by Taiwanese handset manufacturer HTC, in January it said it would be supported by the major US wireless carriers.

Google's plan allowed customers to purchase the Nexus One for more than US$500 - a price well above that of many carrier-subsidised smartphones - and then sign up with a carrier of their choice.

Sprint and Verizon Wireless, the biggest US wireless carrier, declined, however, to offer the Nexus One, dealing a setback to Google's plans.

Mr Rubin said Google would make the Nexus One available through existing retail channels.

'Once we have increased the availability of Nexus One devices in stores, we'll stop selling handsets via the Web store, and will instead use it as an online store window to showcase a variety of Android phones available globally,' he said.

Google does not release sales figures for the Nexus One but it reportedly trails far behind the iPhone and other handsets such as Motorola's Droid.

Android devices on the whole, however, are doing well according to Google chief executive Eric Schmidt.

Mr Schmidt told shareholders on Thursday that manufacturers were shipping at least 65,000 Android-powered mobile phones a day.

He said Android is now being used on 34 models of mobile device in 49 countries and 'is going to be either the number one or number two player' in the mobile phone market.

A number of analysts and technology blogs questioned whether the closure of the Web store could signal the end of the Nexus One and the foray into branded hardware by a company that has made billions through innovative software.

The move 'makes me wonder if that's it for Google doing devices,' Danny Sullivan, editor-in-chief of SearchEngineLand.com, said in a blog post, adding that 'now it seems likely that there won't be a Nexus Two.'

Dan Frommer of BusinessInsider.com said pulling the plug on the online store was the right move by the Mountain View, California-based company.

'Google should be supporting its carrier and other distribution partners, not competing with them,' Mr Frommer said.

Kevin Tofel, writing on technology blog GigaOm.com, added that 'what was once a cannon shot across the bows of the US carriers meant to change the way consumers purchase phones is now a small rubber bullet falling short of its target.' -- AFP

[ifone 4]

Beer, betrayal, a lost iPhone in Apple device tale


SAN FRANCISCO - Fearing 'huge' losses in sales after pictures leaked of its fourth-generation iPhone, Apple convinced police to launch a felony investigation and Chief Executive Officer Steve Jobs contacted the offending Web site himself to try and recover the gadget.


A California court unsealed a search warrant on Friday in the case of the lost or stolen prototype 4G iPhone whose inner workings ended up on popular gadget site Gizmodo - weaving a bizarre tale of beer gardens, paranoid lawyers and emails to the Apple chieftain.

Apple, which has released a new iPhone in each of the past three summers, is known for its secrecy. It is widely believed to be releasing its latest model this summer.

The story of the missing iPhone that belonged to an Apple engineer has captivated Silicon Valley since news broke last month. The missing phone apparently caused concern among Apple executives, according to a meticulously detailed April 23 search warrant by Matthew Broad, a detective with the San Mateo County Sheriff's office.

An outside lawyer for the company considered the missing prototype 'invaluable' and publication of its details'immensely damaging' to Apple's future sales, Mr Broad wrote. The detective is a member of the county's squad that investigates high-tech crimes.

The loss of the prototype, owned by Apple employee Robert Gray Powell, in late March prompted a meeting between company executives and law enforcement.

'Riley stated the publication of the device and its features is immensely damaging to Apple,' wrote Mr Broad in the warrant, referring to Apple's outside counsel, George Riley of O'Melveny and Myers.

Apple's director of information security, Rick Orloff, and the company's general counsel, Bruce Sewell, were also at the April 20 meeting.

Mr Riley said Apple customers would delay purchases until the new iPhone was released, 'thereby hurting overall sales and negatively effecting Apple's earnings,' the detective wrote.

'Riley stated he could not currently provide an estimated loss, but he believed it was 'huge,' Mr Broad wrote.

Apple officials were not available for comment.

Beer and betrayal
The incident began when Apple engineer Powell lost the prototype iPhone while at a German restaurant and beer garden in Redwood City, in the San Francisco Bay Area.

It was then either found or stolen by Brian Hogan, according to the search warrant.

But Mr Hogan's room-mate, worried that the iPhone could be traced back to her after he plugged it into her computer, tipped off Apple that he had sold it to Gizmodo for US$8,500.

Photos and details of the new device - ripped apart to reveal its inner workings - subsequently appeared on the website.

The device featured several improvements on the current generation model, including video, according to Gizmodo.

Mr Jobs then contacted Gizmodo's editor Brian Lam who replied in an email that the device would be returned if Apple acknowledged that it was indeed the iPhone prototype, according to Mr Broad's report.

Mr Lam then gave Apple the address of Gizmodo employee Jason Chen, to arrange for the iPhone's pickup.

Police later seized some 22 items, including an iPhone iPad, 3 Macbooks, an Apple base station and other devices, from Mr Chen's residence.

San Mateo District Attorney Chris Feasel told Reuters no charges had been filed but the investigation was ongoing.

'We are working with Chen's attorney to expedite the search of the computers,' he said.

A San Mateo County Superior Court judge had sealed the search warrant on April 28, but ordered it unsealed on Friday after petitioning by a coalition of media outlets. -- REUTERS