Jan 6

South Korean electronics giant Samsung jumped into the increasingly crowded electronic book reader market Wednesday, unveiling its first devices and a partnership with Google Books.

Samsung took the wraps off two wireless e-readers at the annual Consumer Electronics Show (CES) in Las Vegas, the “E6″ with a six-inch (15.2-centimeter) screen and the “E101″ with a 10-inch (25.4-centimeter) display.

Samsung touted its new black-and-white display e-readers for their ability to allow users to write directly on the screen, making annotations with an electromagnetic resonance stylus pen.

“It’s not just a reading device,” said Doug Albregts, vice president of Samsung’s information technology division. “It’s more like paper with a handwriting feature in that it allows you to write directly on the display.”

Users of the Samsung devices can “write and share wirelessly and truly collaborate,” Albregts said.

Google global director of communications Gabriel Stricker made a video appearance at the Samsung event to announce that the Web giant, which is compiling a vast online library of books, would be a partner with Samsung.

“We want people to find these books anywhere, anytime,” Stricker said, calling Samsung a “great match for us at Google.”

“We’re so excited to make our million-plus public domain books available,” he said.

Samsung said the E6 will cost 399 dollars while the E101 will cost 699 dollars and will be available in early 2010.

The new Samsung devices will go up against Amazon’s popular Kindle and a host of other new devices already on the market, including the Sony Reader, the “Nook” from Barnes & Noble and the Cool-er from Britain’s Interead.

Samsung is one of a number of a companies unveiling e-readers at CES but the category has been overshadowed lately by reports that consumer electronics star Apple may shortly unveil a tablet computer that may double as an e-book reader.

Dec 30

Online search behemoth Google has supplied a list of more than 80,000 Chinese works scanned into its digital library, an association defending Chinese authors’ copyrights said yesterday.

“The current list does not include books published before 1987, when China signed up with the global standards body’s International Standard Book Number (ISBN) classification, which is a unique numeric identifier of books,” Zhang Hongbo, deputy executive director-general of the China Written Works Copyright Society (CWWCS) told China Daily.

“We will push Google to provide a complete list before our fourth-round negotiations begin on Jan 8 next year,” he said.

Last month, the CWWCS said, Google had scanned 18,000 books by 570 Chinese writers without their consent for its online library, Google Books, which is available only to Internet users in the US.

“The talks on compensation will be based on a recheck of the complete list,” Zhang said.

The negotiations will prove to be a better choice for Chinese writers in protecting their copyrights.

“We don’t encourage Chinese writers to sue Google individually due to the high costs involved. A united group could argue for better compensation in the campaign against copyright infringement,” he said.

Mian Mian, a Shanghai-based novelist, had sued Google China earlier for copyright infringement. The Haidian District People’s Court held a hearing on the case Tuesday.

Sun Jingwei, Mian’s lawyer from the Beijing-based Yingke Law Firm, had told China Daily that Mian was the first Chinese writer to individually sue Google for copyright infringement, and that the case could encourage other Chinese writers to seek copyright protection.

“We respect Mian Mian’s right to seek copyright protection, but we hope more writers will voice their displeasure through the CWWCS,” Zhang said.

More than 2,000 Chinese writers were members of the CWWCS, he said.

Mian Mian, a writer known for her lurid tales of sex, drugs and nightlife, filed the suit in October after Google scanned her latest book, Acid House, into its library.

Erik Hartmann, the Asia-Pacific head of Google Books, had shifted base from Singapore to Beijing to handle the negotiations, according to the CWWCS.

“That indicates that Google is paying keen attention to the Chinese digital library market,” Zhang told China Daily.

Marsha Wang, Google’s spokeswoman in Beijing, said the company had removed Mian’s works from its library as soon as it learned of the lawsuit, AP reported yesterday.

Google had no further comment on the lawsuit, the report quoted Wang.

Google’s ambitious effort to make printed works available online has faced opposition from writers in the United States, Europe and elsewhere.

Dec 29

More than 80,000 Chinese books had their copyright infringed by Google, China Business Times reported today.

According to a list of Chinese books Google had scanned to put up in its digital library, 8,000 pieces of works of 2,600 writers from Chinese Writers Association were involved in the case, said China Written Works Copyright Society (CWWCS). Books published on the Chinese mainland before 1987 were not listed.

Dec 26

It seems that some of the worst-case scenarios, predicted earlier in 2009 for the information technology (IT) industry, might have unexpected happy endings as the year draws to a close.

Research firm Gartner painted a gloomy picture in March, forecasting global personal computer (PC) shipments will plunge 11.9 percent in the year from 2008, a drop it said would be the sharpest for the industry in history and would dwarf the previous record decline reached in 2001 during the dot-com bust.

In the following months, Gartner made several adjustments to the predictions with optimism increasing each time.

In most recent updates issued in November, the firm said it now expect worldwide PC shipments to climb 2.8 percent year-on-year in2009 and will achieve double-digit growth in the coming year.

The increasing demand for PCs is seen as a key indicator that the overall IT market has bottomed out and may be embarking on the road to recovery.

Further proofs of a rebound came from the industry’s heavyweight companies, as Silicon Valley big names including Intel, Google, Apple, Cisco and Hewlett-Packard all posted better-than-expected earnings in their most recent quarter.

Executives, relatively cautious while entering the year, were also starting to offer more upbeat rhetoric, fueling the hope that dark cloud of recession is dissipating.

“While there is a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and now feel confident about investing heavily in our future,” Eric Schmidt, chief executive officer (CEO) of Google, said in October.

Schmidt’s words were echoed by Cisco’s CEO John Chambers, who in November declared that “economic recovery is well under way.”

Gartner and others are projecting the IT industry will resume growth in 2010 though analysts differ on whether the recovery will follow V, U or other shape of trajectory.

In a report released in December, research firm IDC said the industry is expected to expand by more than 3 percent in the coming year after a painful market shrinkage of over 8 percent in 2009.

However, it also warned of the potential downside risks the IT industry may face on the path ahead.

“The main downside risk is from double-dip recession in mature economies where unemployment is high, consumer confidence is weak, business profits have been protected by cost reductions (including layoffs), and government stimulus will be temporary,” IDC said.

As mature economies may remain weak and vulnerable to risk factors throughout much of 2010, emerging markets will be a major ensuring factor to the global IT market recovery, according to IDC.

The research firm predicted that more than half of the IT industry growth in 2010 will be fueled by emerging markets led by BRIC, short for Brazil, Russia, India and China.

IDC said the importance of emerging markets to global IT suppliers will accelerate with the BRIC markets alone expected to account for more than 10 percent of global IT spending by the end of 2010.

Peter Sondergaard, senior vice president of Gartner, expressed similar views in October at a Gartner symposium held in the U.S. state of Florida.

By 2012, the accelerated IT spending and culturally different approach to IT in the emerging economies will directly influence product features, service structures and the overall IT industry and “Silicon Valley will not be in the driver’s seat anymore,” he projected.

Dec 24

U.S. antitrust regulators are taking a closer look at Google Inc.’s proposed $750 million purchase of mobile phone marketer AdMob, the latest sign of greater government vigilance as Google tries to expand its advertising empire.

The Federal Trade Commission sought more information about the deal this week, according to a Wednesday post on Google’s blog.

This so-called “second request” doesn’t mean regulators intend to block Google’s AdMob deal. Most other acquisitions that go through this stage end up getting approved.

But the FTC’s action shows regulators are watching Google more carefully as the company tries to build upon its dominance of the Internet’s lucrative search advertising market. Google is expected to pull in more than $22 billion in revenue this year, mostly from ads shown alongside search results and other Web content.

“We know that closer scrutiny has been one consequence of Google’s success,” Paul Feng, a Google product manager, wrote in Wednesday’s blog posting. Echoing previous management comments, Feng said the company remains confident its AdMob purchase, announced last month, will be approved.

Google’s huge lead in Internet search triggered a 2008 government investigation that scuttled its plans to enter into an advertising partnership with rival Yahoo Inc., which runs the second most-popular search engine. Yahoo plans to work with Microsoft Corp. instead, beginning next year if those two companies can gain regulatory approval.

Since its inception nearly four years ago, AdMob has built a thriving network that sells and delivers ads on applications and Web sites designed for the iPhone and other mobile devices. It’s still relatively small with estimated annual revenue of $45 million to $60 million, but regulators apparently want to understand whether its technology and advertising contacts would give Google an unfair advantage in its quest to sell more mobile phone ads.

Google management has indicated that it believes mobile marketing eventually may become bigger than advertising on Internet-connected computers. That tipping point still appears to be many years away, with U.S. mobile advertising expected to total $416 million this year, about 2 percent of overall Internet ad spending in the country.

The FTC’s decision to take more time digging into the AdMob deal means Google probably won’t be able to take over the company for several more months, Stifel Nicolaus analyst Rebecca Arbogast wrote in a Wednesday research note. It took a year for the FTC to approve Google’s $3.2 billion acquisition of Internet ad service DoubleClick Inc., which was completed in March 2008.

Google’s first big deal, a $1.76 billion acquisition of the video site YouTube, was cleared by regulators in a month in 2006.

Separately, Google ran into another potential roadblock Wednesday after another takeover target, On2 Technologies Inc., said that it still hadn’t collected enough shareholder support to close its deal. On2, based in Clifton, N.J., adjourned a shareholder meeting to approve its $106 million sale to Google until Feb. 17 in hopes of getting the necessary support.

Google, which is based in Mountain View, agreed to buy On2 in August to help improve YouTube’s video technology.

Dec 22

Was it only a decade ago that a blackberry was a mere summer fruit? That green was, well, a color, and reality TV was that one show sandwiched between music videos on MTV?

There were, of course, huge political and social upheavals that roiled our world in the past decade. But there were also the gradual lifestyle changes that you don’t always notice when they’re happening — kind of like watching a child grow older. Here’s an alphabetical look at 50 things that changed our lives since the beginning of the millennium:

AIRPORTS: Remember when you didn’t have to take your shoes off before getting on a plane? Remember when you could bring a bottled drink on board? Terrorism changed all that.

ALTERNATIVE MEDICINE: From acupuncture to herbal supplements to alternative ways of treating cancer, alternative medicine became more mainstream than ever.

APPS: There’s an app for that! The phrase comes from Apple iPhone advertising, but could apply to the entire decade’s gadget explosion, from laptops to GPS systems (want your car to give you directions to Mom’s house in Chinese, or by a Frenchwoman named Virginie? There was an app for that.)

AARP cards … for boomers! Some prominent Americans turned 50 this decade: Madonna. Prince. Ellen DeGeneres. The Smurfs. Michael Jackson — who also died at 50. And some prominent “early boomers” turned 60: Bruce Springsteen and Meryl Streep, for example.

AGING: Nobody seemed to look their age anymore: Clothes for 50-year-old women started looking more like clothes for 18-year-olds, tweens looked more like teens, long hair was popular for all ages, and in many ways women’s fashion seemed to morph into one single age group.

BLOG: I blog, you blog, he blogs … How did we spend our time before blogging? There are more than 100 million of these Web logs out there in cyberspace.

BLACKBERRIES: Considered essential by corporate CEOs and moms planning playdates. Introduced in 2002, the smartphone version is now used by more than 28 million people, according to its maker, Research In Motion Ltd.

BOOK CLUBS: Thanks in part to Oprah Winfrey, the decade saw not only a profusion in book discussion clubs but a growing reliance on them by publishers.

CABLE: Cable 24-hour news made the evening network news seem quaint, cable dramas reaped Emmys … and at decade’s end, even Oprah was making the move to cable.

CAMERAS: Remember those trips to get film developed? Nope? Even your grandmother has a digital camera, and she’s probably e-mailing you photos right now or uploading them to a photo-sharing site.

CELEBRITY CULTURE: Celebrity magazines fed a growing obsession with celebrities and the everyday minutiae of their lives. By decade’s end, we were still obsessed, though Britney Spears and Angelina Jolie had ceded many covers to reality stars like Jon and Kate Gosselin. Celebrity Web sites like TMZ took hold mid-decade.

CELL PHONES: Cell phones are now used by more than 85 percent of the U.S. population and for some have replaced land lines entirely. On the downside, they’ve made cheating on a spouse more difficult — just ask Tiger Woods.

CHEFS: Chefs are hot! The Food Network, whose viewership tripled this decade, reeled in viewers with high-voltage personalities like Rachael Ray and Bobby Flay, Emeril Lagasse and Giada De Laurentis. Meryl Streep starred in a cinematic pean to the late Julia Child.

CONNECTIVITY: As in, we’re all expected to be connected, wirelessly, all the time. Boss e-mails you on a Sunday? Better answer, unless you’re off in Antarctica — you have no excuse.

COUGARS: A new TV series called “Cougar Town” focuses on a phenomenon that gained its name this decade: women dating younger men.

CROCS: Those ubiquitous plastic clogs debuted in 2002 and became the shoes you loved to hate. Kids love ‘em, but there are Web groups dedicated to their destruction. Not to be deterred: First lady Michelle Obama, who wore them on vacation in 2009.

DANCING: Dancing never went out of style, but this decade saw the huge popularity of dancing contests like “So You Think You Can Dance” and “Dancing With the Stars.”

DATING: Dating was transformed like everything else by Internet sites, rendering other ways of meeting people obsolete. And it wasn’t just the territory of the relatively young: Seniors found love online, too.

DVRs: Suddenly, DVR-ing is a verb, and what it means is this: There’s no reason to know anymore what channel your program is on, and what time.

EMBARRASSMENT ENTERTAINMENT: Embarrassment has always been part of comedy — you need only think of Don Rickles — but this is the decade of cringe-worthy Larry David in “Curb Your Enthusiasm,” Ricky Gervais, and of course Sacha Baron Cohen, who as Borat and Bruno shamed perhaps the entire country.

FACEBOOK: Can you believe this social networking site was once limited only to Harvard students? Now it’s a time-sucking obsession for more than 300 million users globally and a whole new form of social etiquette: Who to friend on Facebook?

FAT: This was the decade that fat became the enemy of the state. New York City banned trans fats, and Alabama — second in national obesity rankings — introduced a tax on overweight state workers.

FOODIE: It’s not just that guy in the White House who liked arugula — this was the decade of the foodie, when we all developed gourmet palates. Even a burger became a gourmet item — as in Daniel Boulud’s truffle burger, stuffed with foie gras and short ribs.

GOING GREEN: From the kind of light bulbs we use to the kind of shopping bags we carry to the cars we drive, “going green” took hold this decade. Now, it’s not strange to hear a schoolkid tell a parent to use a cloth grocery bag.

GOOGLE: This was the decade that Google became a part of our brain function. You know that guy who was in that movie — when was it? Just Google it.

GPS: We can’t get lost anymore — or at least it’s pretty hard, with the ubiquitous GPS systems. But you’d better type in your location carefully: One couple made a 400-mile mistake this year by typing “Carpi” rather than “Capri.”

HELICOPTER PARENTING: Translation: helicopters hover, and so do many parents. After years of obsessive attention to safety and achievement of the youngest children, some said a backlash was under way.

INFORMATION OVERLOAD: An explosion in Internet use led to an overload of information about practically everything. It’s at our fingertips, but is it accurate? Some call it part of a larger phenomenon, namely …

INSTANT GRATIFICATION: Otherwise known as being able to get anything you want within an instant. Often referred to as a theme of the decade.

IPODS: An icon of the digital age, it’s hard to believe this portable media player was first launched in 2001. Six years later the 100 millionth iPod was sold.

LIFE COACHES: In the aughts, there’s a coach for everything! So why not life itself? Some say life coaches are merely therapists without the license or regulations.

MUSICALS: They’ve been around forever, but this decade musicals came back to film, starting with “Moulin Rouge” and “Chicago.” But for kids, it was Disney’s extremely successful “High School Musical” franchise — three movies and counting — that brought back the musical magic.

NETFLIX: The DVD by mail service, established in 1997, announced its two-billionth DVD delivery this year. For many, those discs on top of the TV are just one more thing to procrastinate over.

ORGANIC: Americans rushed to fill their grocery carts with organic food, making it big business — now a $21 billion industry, up from $3.6 billion in 1997. At decade’s end, Michelle Obama planted the first White House organic vegetable garden.

PREGNANCY CHIC: If you’ve got it, flaunt it: That was the new ethos of the pregnancy experience, with chic clothes that emphasized the bulging belly, personal pregnancy photos, and endless coverage of celebrity pregnancies.

REALITY TV: As a nation, we became addicted to reality TV, from the feuding Gosselins of “Jon & Kate Plus 8″ to “American Idol” to “Project Runway.” At decade’s end, the Heenes of Balloon Boy fame and the Salahis of gatecrashing fame give reality TV some unwanted attention.

RECESSION CHIC: Fashion skewed to more severe styles — and much black — as so-called “recession chic” took hold in the latter part of the decade.

RETRO CHIC: Once you forget the smoking, the racism, the sexism and the homophobia, the early ’60s depicted by the AMC series “Mad Men” sure looked good. The swinging Madison Avenue ad men make neckties cool again.

SEXTING: Combine texting with a cell phone’s camera function and you get this parental nightmare. A survey from Pew Research Center’s Internet & American Life Project found that 15 percent of teens ages 12-17 with a cell phone had received sexually suggestive images or videos.

STARBUCKS: It’s a cliche that there’s one on every block, but sometimes it seemed like it — and millions now consider it normal to spend $4 or so on a coffee drink in the morning, perhaps a venti half-caf half-decaf vanilla latte with an extra shot.

TATTOOS: It started innocently enough — maybe a butterfly on the shoulder or a tribal symbol on the bicep. A few characters from the Chinese alphabet later it seemed any hipster who really meant it had a full sleeve of tattoos. The trend extended to middle-aged moms and even tween idol Miley Cyrus.

TEXTING: R u still rding this sty? Hope u r. This is the decade we start communicating in the shorthand of text messages. Get used to it: E-mail is so ’00s.

TV SCREENS: Television screens became bigger and flatter, making some ordinary living rooms and dens the equivalent of big-studio screening rooms. At the same time, though, people were watching movies and videos on the tiniest screens imaginable — on their iPods other mobile devices.

TWEEN CULTURE: Tweens, especially girls, became an economic force to be reckoned with, buying everything from clothes to electronic devices to music to concert tickets.

TWITTER: The new social network introduced tweets, retweets, follows and trending topics — as long as it fit in 140 characters.

UGGS: Not since the Croc (see above) has functional footwear created such a frenzy. The fur-lined snowboots were everywhere, no matter the climate. Los Angelenos insisted on wearing them with shorts.

WII: In a sea of ever-more-sophisticated video games, this simple console became the decade’s breakout hit by appealing to the non-gaming masses. Wiis became a center of family gaming, home fitness and even senior socializing.

WIKIPEDIA: A boon to lazy students everywhere, the open-source encyclopedia used the masses to police its entries and keep them (mostly) (sometimes) accurate.

YOGA: Madonna, Gwyneth and other bendy celebrities brought the eastern practice mainstream. By the end of the decade, even Grandma could do downward-facing dogs on her Wii Fit.

YOUTUBE: Let’s end this list and go kill some time by watching … YouTube videos! The video-sharing site was born in 2005. Political candidates in 2008 even had their on YouTube channels. The most popular video yet: “Charlie Bit My Finger,” in which baby Charlie bites the finger of his brother Harry.

Dec 20

Baidu, China’s biggest search engine, is set to face a lawsuit for allegedly pirating from the country’s leading online literature website, Shanda Literature Limited (SDL), China Daily reported on Saturday.

Baidu is the latest leading search engine to be entangled in high-profile legal action after Google was sued by Chinese novelist Mian Mian for alleged copyright infringement this week.

“Baidu’s connivance at net piracy leads to over 1 billion yuan of losses to our company every year,” claimed SDL CEO Hou Xiaoqiang.

His company will sue Baidu in January, he said. It will ask Baidu to delete illegal download links and pay indemnity of more than 1 million yuan.

The three websites owned by SDL boast the largest Internet portal in the world dedicated to original works of literature. SDL said the three websites have already accumulated copyrights to almost 40 billion Chinese characters-worth of original Chinese literature. The highest daily page view volume has exceeded 500 million.

VIP members of the SDL sites pay 0.02 yuan per thousand words of books. However, SDL claims Baidu is providing numerous links that offer free illegal downloads of works written by their contracted writers.

Baidu was not available for comment on Friday, said the newspaper.

Protection of copyright on the Internet is arousing attention in China. Negotiations have continued since last month between Chinese authors and Google. The authors claim Google scanned 18,000 books by 570 Chinese writers without paying the writers.

Dec 18

Google is attempting to promote its Chrome browser by offering it as a Christmas present.

The service is essentially an e-card, allowing the sender to enter a recipient’s e-mail address, and attach a photo or video.

The idea is that people might send it to friends and relatives, who may be unaware of the range of existing alternative browsers. “If you’re looking for gift ideas, why not wrap up Google Chrome with one of our shiny themes and give the gift of super-fast browsing? Google Chrome is so simple to use, even your granny will love it”, Google says.

Since its launch last year Google Chrome has failed to take a significant share of the browser market. Less than 5 percent of Internet users currently browse with Chrome despite its speed, as compared to Internet Explorer and Firefox.

However Chrome is the fast growing browser and has crept up slightly in the last few weeks to third place in the browser wars.

NetApplications’ measurements of browser usage share, which track which browsers individuals use based on visits to the company’s network of Web sites, gave Chrome the third-place spot after Microsoft’s Internet Explorer and Mozilla’s Firefox for the week of December 6 through 12. According to a Computerworld story, published on Tuesday, Chrome had 4.4 percent share to Safari’s 4.37 percent.

Even though 0.03 percentage points is a lot of people in the real world, it is a small fraction. Weekly statistics also vary. Although Firefox cleared 25 percent share in one week of November, it averaged only 24.72 percent for the overall month.

Regardless of the precise details the Chrome trajectory is upward. Its November usage share was 3.93 percent to Safari’s 4.36 percent. And although Google has relied on word of mouth for promoting its original online search product, its more active role in making Chrome a Christmas present may find new users.

Dec 16

The European Union (EU) rendered legally binding Microsoft commitments to boost competition on the web browser market, said a press release on Wednesday.

The EU’s executive commission rendered legally binding Microsoft commitments to boost competition on the web browser market and dropped charges against the company, as it committed to give its Windows users a wider choice of web browsers, and allow computer manufacturers and users the possibility to turn Internet Explorer off.

Under the terms of the deal with the commission, computer users with the Microsoft Windows PC operating system will have to be shown a “Choice Screen” which will give them a wider choice of the most widely-used web browsers that run on Windows such as Mozilla’s Firefox, or Google’s Chrome.

“Millions of European consumers will benefit from this decision by having a free choice about which web browser they use,” said EU Competition Commissioner Neelie Kroes. “Such choice will not only serve improve people’s experience of the internet now but also actas an incentive for web browser companies to innovate and offer people better browsers in the future,” the commissioner added.

If Microsoft does not abide by its commitment for the next five years, regulators could fine it up to 10 percent of its yearly global turnover without having to prove their case.

The European Commission’s preliminary concern was that competition was distorted by Microsoft tying Internet Explorer to the Windows PC operating system in breach of EU rules on abuse of a dominant market position. It meant that neither computer manufacturers nor users could uninstall Microsoft’s web browser and replace it with another browser of their choice; now, manufacturers will be able to sell PCs without internet explorer in Europe.

Dec 14

Google Inc. is determined to gain more influence over how the Web is used on mobile phones, even if the next step in the quest tramples some of the relationships forged during its two-year expansion into the wireless industry.

The focus on Google’s mobile ambitions is sharpening now that the Internet search leader is working on a new phone called “Nexus One.” The handset is being tested by Google’s 20,000 employees, who received the device just before the weekend.

Google declined to comment on the reason for the Nexus One’s development.

But The Wall Street Journal and The New York Times have described the employee testing as a prelude to selling the phone directly to consumers early next year.

The phone — manufactured by Taiwan’s HTC Corp. — wouldn’t be tied to a specific carrier, unlike other devices using Google’s mobile operating system, “Android.” The autonomy of a so-called “unlocked” mobile phone could give consumers more freedom to select the carrier of their choice, although the unique technology running competing U.S. wireless networks will probably limit the options.

It’s not clear how wide-ranging Google’s ambitions are for the phone. Unless Google is willing to sell the phone at a loss, the Nexus One is likely to be much more expensive than Apple’s iPhone and similar devices, which receive subsidies from wireless carriers.

With those subsidies, most “smart” phones sell for $50 to $200, instead of the $400 to $600 price they’d have without the financial aid. The carriers recover their expense through service plans that cost $800 to $1,000 a year.

Without a sharp discount, Nexus One won’t make much of a dent in the mobile phone market, predicted Forrester Research analyst Charles Golvin.

Google, which is based in Mountain View, started selling an unlocked version of the first “Android phone,” T-Mobile’s G1, for $399 last year. It was aimed at Android developers, but anyone who registered as such could buy one.

If it intend to keep the Nexus One’s price low enough to pique consumer interest and protect its earnings, Google might still have to negotiate subsidies from wireless carriers — an arrangement that wouldn’t change the status quo.

Or Google could be hoping to generate enough revenue from ads shown on mobile Web sites and applications downloaded on the Nexus One to cover the cost of any discounts.

But the mobile advertising market in the U.S. is still small, with $416 million in revenue expected this year, according to research firm eMarketer Inc. In the United States, Google generates more than $10 billion annually from the sale of online ads shown on personal computers.

Google hopes to improve its mobile advertising network with the $750 million acquisition of AdMob, a pioneer in the field. That deal is expected to close early next year.

“Mobile is clearly the next big business opportunity and (Google) wants to do everything possible to control its own destiny,” Golvin said.

Selling equipment would mark a significant shift for Google, which has consistently said it prefers to leave the design and marketing of smart phones to manufacturers and carriers that have embraced Android since the system’s November 2007 introduction.

At that time, Google downplayed the need for a “Gphone,” saying its mobile software and alliance with dozens of partners have a bigger impact on the market than any single device.

Android has given Google a strong foothold in the mobile market, although it’s not nearly as large the one Apple has carved out while selling more than 30 million iPhones during the past 2 1/2 years.

Motorola Inc. is pinning its smart-phone hopes on the Android and Verizon Wireless has thrown its weight behind phones running on the Google software, too. Over the past month, Verizon has been heavily promoting the Google-powered Droid phone as a compelling alternative to the iPhone.

William Blair & Co. analyst Anil Doradla believes Google may alienate some of its partners and thwart Android’s expansion by selling its own phone.

“Given that Android is still in its initial stages of deployment, Google needs all the good will it can get to ensure success,” Doradla wrote in a Monday research note.

Verizon Wireless said it isn’t upset about Nexus One yet.

“We are still looking at different possibilities with our friend Google,” Verizon spokesman Jeffrey Nelson said.

If Google decides to sell its own handset, it would intensify its budding rivalry with Apple, a former ally that shared antipathy toward Microsoft Corp. Apple spokeswoman Natalie Harrison declined to comment Monday on the Nexus One.

Google shares gained $5.22 to close Monday at $595.73 trading, while Apple shares increased $2.31 to $196.98.

The brewing competition between Google and Apple sparked a Federal Trade Competition inquiry into the two common directors the companies shared on their boards. That was resolved when Google Chief Executive Eric Schmidt resigned from Apple’s board in August and Genentech Chairman Arthur Levinson quit Google’s board in October.

The iPhone has been the biggest source of mobile traffic to Google’s mobile services during the past two years, according to Google executives.

Nexus One apparently is a reference to a line of replicants, or androids, in the 1982 science fiction film “Blade Runner.” Its name was confirmed in a Federal Communications Commission filing released Monday.

Based on Internet photos of the phone, Nexus One will run several Google applications, including a recently introduced feature that lets mobile users submit pictures of landmarks, products and other objects to get a pertinent list of search results.

The FCC filing indicated the Nexus One will be compatible with many networks overseas, but T-Mobile has the only 3G network that would support it in the U.S. It would only take minor tweaking to make it work on AT&T Inc.’s 3G network in the U.S. as well, Golvin said.

T-Mobile declined to comment on the Nexus One.

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