Google is phasing out its online mobile phone store, and plans to increase the availaibility of its Nexus phone in retail locations worldwide.
The Nexus One was sold unlocked for $US529 without a plan or contract, although customers could buy it for a subsidized $US179 if they signed up for a two-year contract with T-Mobile.
The Nexus One, manufactured by Taiwanese company HTC, was Google's first smart phone. 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 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-CEO Sanjay Jha told the Chicago 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."
