Let the games begin.

Some analysts were speculating that the roll out of Google’s Nexus One –unveiled today in Mountain View —  could present something of a headline risk for Apple shares. Global equities research analyst Trip Chowdhry wrote in a note published Monday:

We think, there is a near term headline risk to Apple’s Stock, and it may be prudent for investors with short term horizon to protect their downside risk on Apple. However, investors with long term horizon should be fine, as Apple will be able to catch up with Google over the next 6 months or so, and the final winners in Smart Phone segment will be Google and Apple against less innovative company like RIMM.

But judging from the immediate market reaction, (Indicated on the graph above), Google shares seem to be the ones that have suffered a bit on the announcement of the phone, which costs $529 without a contract and $179 with a two-year T-Mobile contract. Google shares dropped a bit less than three dollars about the same time the press conference began. Granted, that’s not a giant move with a stock trading above $620. Google is down 0.4% on the day. Apple is losing altitude too, but still in positive territory for the day at 0.2%.

KEY DIFFERENCES

Storage capacity and add ons
Both the iPhone and the Nexus One have the same maximum storage capacity of 32GB. The main difference is iPhone storage is built into the phone, with the 3GS available in either 16GB or 32GB whilst the Google phone has variable storage with a microSD slot. The Google smartphone is sold with a 4GB card, which can changed to a maximum of 32 GB. The Google phone also differs as the battery is detachable and replaceable, whereas the iPhone phone battery is built into the device.

Apps
Apple currently boasts some 93,200 applications available for download from the iTunes store.  Ranging from free to paid, an entire spectrum of applications are available, covering social media, outdoor activities, making music, planning meals and activities to games, drawing, media and information services. There are currently 20,000 applications available for the Google phone, which is expected to increase as new apps are developed for the device.

Operating system
One of the key differences lies in the operating systems the two phones use.  The Google Nexus One runs on Android 2.1, open-source software for mobile devices.  Its openness makes it unique and is designed to allow developers to collaborate and innovation to be sped up. With a progressive open-source license it enables operators and manufacturers to design, build and distribute their own products. The iPhone runs exclusively on Apple software which limits the device to official distribution via the App store and iTunes.

Camera
The Google smartphone camera boasts 5 megapixels, autofocus, 2x digital focus and a built in LED flash. In comparison the iPhone camera is 3 megapixels with autofocus. Both phones have video recording capacities but the iPhone has inbuilt video editing abilities.

Voice command
Both phones also include voice command features. The iPhone allows the operator to find a contact or a music stored in the iTunes library. The iPhone 3GS also enables the users to record, store and distribute voice memos. The Google smartphone also has speech command capabilities. It can transfer voice to text and email and can also search via speech.

Multitasking
The Google Nexus One has greater multitasking abilities, making it easy to go between programs and perform multiple activities. In comparison the iPhone is said to be limited to playing music whilst being online or sending a message.

TECHNICAL SPECIFICATIONS

iPhone
Battery life: 5 hours, 3G talk time, 300 standby
Display: 3.5 inch widescreen multi-touch, 480 x 320 pixel resolution
Weight: 135 grams
Processor: 600 MHz
Additional features: 3D graphics, camera, video recording, voice control, compass, maps, accessibility features for visually or hearing impaired, Internet tethering, voice memos, email, Safari browser, motion sensor.

Google Nexus One
Battery life: 7 hours 3G talk time, 250 hours standby
Display: 3.7 inch touch-screen, 480 x 800 pixel resolution
Weight: 130 grams
Processor: 1 GHz
Additional features: 3D graphics, voice control, dual microphone noise cancellation, colour alerts, camera, video recording, compass, maps, email, Internet browsing, motion sensor.

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The AT&T website has stopped offering phones to the New York metropolitan area, and entering a zipcode from there delivers the message that it is “unavailable” in that area, according to a blog report. AT&T is continuing to sell iPhones in NYC stores.

After verifying this on the AT&T Wireless website, the Consumerist blog called up AT&T customer service and had this conversation:

Daphne: Welcome to AT&T online Sales support. How may I assist you with placing your order today?

Laura: Hi, I was looking at the iPhone 3Gs and the system tells me that I cannot order one in my ZIP code. My zip code is 11231. (Brooklyn, NY) Is this true? Are iPhones no longer available in New York City?

Daphne: I am happy to be helping you today . Yes, this is correct the phone is not offered to you because New York is not ready for the iPhone.

Daphne: You don’t have enough towers to handle the phone.

Laura: Thank you for your help. So the phone is not available to people anywhere in the city?

Daphne: Yes this is correct Laura.

The move echoes the sentiment of AT&T’s CEO earlier this month – he wants iPhone users to limit their usage to take the strain off his network. But to cut off website purchases to New York City seems like both a PR nightmare and a move that’s unlikely to make any difference: surely iPhone buyers will just pick up the phone elsewhere?

We sure hope the reports are wrong on this.

Update: BoyGeniusReport got a similar response from AT&T, thus confirming the reports. AT&T provided no reason to BGR why they’ve stopped selling iPhones to NYC residents.

Update 2: AT&T is now telling callers that it has stopped accepting online orders in NYC due to fraud.

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