Reuters

FOR much of past year, Google told anyone who would listen that it really didn't intend to launch its own mobile phone, in spite of persistent rumours to the contrary. But on Tuesday January 5th it proved the rumour-mongers right by unveiling Nexus One, a Google-branded smart phone that represents the company's first direct foray into the handset market. The new device, which runs on the web giant's Android operating system, puts Google on a collision course with Apple, Nokia and other big purveyors of smart phones.

All of these firms have set their sights on capturing a big chunk of the fast-growing market for mobile-internet services, which is being driven by a proliferation of web-enabled devices such as smart phones and e-readers. Many of those services are likely to attract a lot of web-based advertising, a business at which Google excels. Its plan to launch a range of phones beginning with Nexus One is designed to protect its lead in the online-advertising arena as traffic switches from personal computers to smart phones and other portable devices.

The plan is not without risks. Google will have to tread carefully in order to avoid upsetting firms such as Motorola that are using the Android system in their own smart phones. Several gadget gurus have already anointed Nexus One, which boasts some innovative features such as extensive voice-to-text translation capabilities, as the best Android-powered phone on the market—an accolade that will hardly endear it to rivals using the same system.

Google will also have to keep mobile-phone network operators happy, at least for a while, in order to maximise distribution of its new gadget, which is being built by HTC, an experienced Taiwanese manufacturer. Google is selling an “unlocked” version of Nexus One directly to consumers who can then choose their own wireless service plan, but it has also struck deals with firms such as T-Mobile in America and Vodafone in Britain who will bundle it with their own services and market it through their traditional outlets.

If Google can churn out a series of hit mobile devices it will inevitably butt heads more often with Apple, whose wildly popular iPhone has stolen an increasing share of the smart-phone market. The tension between the two firms has been growing as both manoeuvre to grab a bigger share of the mobile-advertising business. As Google unveiled its new phone, it emerged that Apple had bought Quattro Wireless, a firm whose technology allows advertising to be placed on the screens of phones and other mobile devices. Quattro competes with AdMob, a company that Google successfully bid $750m for last November.

It may be no coincidence that the Quattro deal has been struck now. Rumours abound that Apple will soon launch a tablet-style mobile device that combines wireless connectivity with a sizeable screen that lets users read e-books and newspapers, watch films and run software programmes. This would be an obvious vehicle for carrying online ads. Assuming the iTablet or whatever it is called turns out to be another smash hit for Apple, it may not be long before it has a Google Tablet to contend with too.