Google phone grips mobile industry

Google’s latest weapon in the battle to halt the iPhone, the Nexus One, has gripped the industry following Google’s leak on the weekend that it was testing an advance version of its Android operating system.

Since then Google has confirmed that the new handset will be launched in early January and will not be tethered to one or a niche group of carriers and will be an unlocked GSM handset. Sources close to the product have suggested that it features a Snapdragon chip, has a super high-resolution OLED touch screen, is thinner than the iPhone, has no keyboard and two microphones.
All Things Digital claims that Google will take the radical step of selling the handset on its own website while also hatching a distribution deal with T-Mobile.
The handset will be manufactured by HTC, which also built the first Android handset, sources also say.
Leaked pictures of the handset’s prototype from device site Engadget reveal a similar look as the HTC Bravo.
The price points are also a mystery, suggesting Google will take gamble on going to market with carrier subsidies. Some pundits suggest Google might look at subsidizing the phone itself with an advertising-backed model.