By Wailin Wong
| Google is phasing out its online mobile phone store, ending an
experiment in selling devices directly to consumers.

The technology giant had been selling its Nexus One device via its Web
store since the phone’s launch in January. This retail channel marked a
significant difference from the way the vast majority of U.S. consumers
purchase their mobile phones — that is, subsidized through a wireless
service provider. The Nexus One was sold unlocked for $529 without a
plan or contract, although customers could buy it for a subsidized $179
if they signed up for a two-year contract with T-Mobile.

The Nexus One, manufactured by Taiwanese company HTC, was Google’s first
smartphone. The device runs Android, the mobile operating system
developed by Google. The platform has grown rapidly over the last year,
with companies such as HTC and Motorola producing a variety of Android
devices for different carriers.

“As with every innovation, some parts worked better than others,” Andy
Rubin, Google’s vice president of engineering, wrote in a Friday post on
the Official Google Blog. “While the global adoption of the Android
platform has exceeded our expectations, the web store has not. It’s
remained a niche channel for early adopters, 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.”

Rubin said the company plans to increase the availability of the Nexus
One in existing retail locations worldwide. Then Google will discontinue
Web sales, while maintaining the site as “an online store window to
showcase a variety of Android phones available globally.”

Motorola had been paying close attention to Google’s success with its
retail channel. In January, co-Chief Executive Sanjay Jha told the
Tribune that the company was planning a “direct-to-consumer device with
Google” and that he found the retail strategy to be an interesting one.
By late last month, Jha was sounding more cautious.

“My thinking is (Google is) rethinking how they want to go” with the
retail strategy, Jha told the Tribune in April. He added that Motorola
continues to “work closely with them and will support them closely.”