Google (GOOG) is finding out the hard way that a sleek new piece of gadgetry comes with high consumer expectations. The Google Nexus One, which was just released over a week ago for direct sale by Google without a contract from partner T-Mobile USA, is losing the bloom (off the rose, that is).

Jack Dorsey is accustomed to dealing in small. In 2006, he co-founded social media sensation Twitter, which traffics in content bites that are no more than 140 characters in length. He left his position as CEO a year ago (and remains chairman) and is now focusing on his newest endeavor: mobile payments. He came up with the idea for his new company, Square, a year ago and hopes it will revolutionize how money is exchanged.

The first product that Square is bringing to market lives up to its name: it's a small cube-shaped credit card terminal that can plug into an iPhone's headset jack. The problem that the device is intended to solve is the swift and easy transaction of credit card payments for anyone. It was inspired by the plight of Dorsey's friend, Jim McKelvey, a glass artist who lost a $2,000 sale because he couldn't accept credit card payments.

Taiwan's Acer has been on a tear recently. The company gobbled up Gateway quite a while back and has been a top maker of red-hot netbook PCs so far this year. The PC maker has now said that it will be featuring Google, Inc.'s (NASDAQ: GOOG) 's Android operating system on future netbooks as an alternative to what it ships on most of its netbooks -- Microsoft Corp.'s (NASDAQ: MSFT) aging Windows XP operating system.

The difference here is that while Microsoft XP still may cost a little to Acer and all other PC makers circulating netbooks on the market, Android is a freely-available, open-source product. Acer won't pay a dime for each copy of Android in installs on its netbooks, which -- interestingly enough -- may be the first real head-to-head equitable competition between Google and Microsoft.

Hewlett-Packard Co. (NYSE: HPQ) is looking at using the Android operating system owned by Google Inc. (NASDAQ: GOOG) and currently used on mobile smartphones (but with the potential for much more). HP could add Google's wares to future netbook PCs in addition to offering nearly decade-old software known as Windows XP like what's currently offered on HP netbooks.

Reportedly, PC giant Hewlett-Packard (NYSE: HPQ) is "studying" Google's (NASDAQ: GOOG) Android operating system as it tries to determine if the software will work well with its computers. HPQ is examining the system's computing and communications functions, although a company spokeswoman would not comment on the possibility of HPQ shipping Android-powered products.

If we see an Android alliance between the two companies, HP could sell netbooks (miniature laptops) pre-loaded with the Android. Such an alliance could be a boon for Google, as it has tried to convince PC makers to load the Android in notebooks in an attempt to allow users to share data between netbooks and phones.

Google Inc.'s (NASDAQ: GOOG) Android operating system was publicly marketed as a mobile operating system when it was released. The first wireless handset it was available on was the G1 smartphone offered by the fourth-largest U.S. wireless carrier, T-Mobile USA. But, you can't keep an open-source operating system developed by the Google behemoth down to just one platform.

Google, Inc.'s (NASDAQ: GOOG) Android mobile operating system just received a rather large shot in the arm. The Open Handset Alliance, which supports the Android operating system, gained a bunch of new members this week. Companies like Sony Ericsson, Vodaphone Group Plc and ARM Holdings all joined the Google-created OHA, but there remains one major feat for these hardware manufacturers and mobile phone carriers.

That feat is to create more Android-powered smartphones that will compete with the likes of Apple Inc.'s (NASDAQ: AAPL) iPhone and the most-used mobile operating system in the world, Symbian, where Nokia Corp. (NYSE: NOK) is the main cheerleader. Sony Ericsson announced that it would have an Android-powered device sometime in 2009. With a total of 47 members, Google's feat here is pretty staggering. To get that many leading hardware and mobile partners to join in on anything is a monumental feat.

Then again, 64 companies have indicated they plan to join the Symbian Foundation, which will give them royalty-free access to Symbian's marketing-leading software for mobile handsets and smartphones. The battle is far from over, with Symbian, Android and the tightly-controlled iPhone ecosystem all playing on the same field (and there are others as well). Google's Android is not guaranteed market-leading success unless it can find a way to give its partners some type of competitive advantage. So far, there is very little compelling evidence this is happening -- but then again, the first Android handset only shipped two months ago.

According to Taiwan's CENS website, T-Mobile USA will sell half a million of the Google, Inc. (NASDAQ: GOOG) G1 smartphone built by Taiwan's own HTC and sold exclusively (so far) by T-Mobile USA. Although that's not up to par with announced Apple, Inc. (NASDAQ: AAPL) iPhone 3G sales, it's no slouch expectation either.

When the G1 phone is released for sale on October 22, that leaves just over two months for that projected sales figure to be hit. Although the unit will cost a relatively paltry $179 with a two-year contract, can T-Mobile USA really hit that sales number? I have severe doubts, although T-Mobile USA will easily be able to start competing with established players like Apple in 2009.

Although Apple has an entire year headstart over rivals like the G1 and the Samsung Instinct, there are many customers who want the novelty of a touchscreen smartphone but don't want to be locked down into the Apple ecosystem -- even though it works very well and would serve most customers 100% perfectly.

But then again, Apple's first-mover advantage and its incredibly powerful marketing muscle may just keep it floating above the likes of the Google-powered G1 for quite some time. Google's efforts with the G1 could make it a second-tier player here while Apple dominates. That is, unless, T-Mobile USA starts off quick with half a million in unit sales this holiday season and never looks back. What is your projection?

Motorola Corp. (NYSE: MOT) is apparently planning on a rather large piece of its wireless business being wrapped around Google Inc.'s (NASDAQ: GOOG) Android operating system. The wireless company already has 50 employees working on Android development and will be boosting that number to 350 before long. Since Motorola is one of the larger members of the Open Handset Alliance (OHA), the open-source software movement meant to support all things Android, this comes as no surprise.

Perhaps Motorola wants some revenue from software development for the mobile space instead of selling profit-challenged hardware? The company has had a rough time of things recently, but after spinning off its handset division soon, Motorola wireless hardware and software may be on the path to re-inventing themselves.

But can Google's vaunted wireless platform challenge the entrenched iPhone, Windows Mobile and Symbian space? Together, those three platforms control a huge swath of the smartphone market. Nokia Corp. (NYSE: NOK), which now owns all of Symbian, has the lion's share of smartphone software sales globally. The newer iPhone 3G has launched in dozens of countries and continues to sell very well. Let's not count out Windows Mobile. Even Google may find it hard to take large pieces of market share away from these players. But at least Motorola is only placing a small bet here on Android's success. Three hundred fifty employees isn't too many, is it?

Google, Inc. (NASDAQ: GOOG) has been touting its Android mobile operating system platform for over a year. Still without a product to showcase its efforts, many are beginning to wonder if Google has classified Android as "vaporware." Even though the company is itself not making a single piece of hardware, a mobile handset is the product the customer will use. So, Google, where is it?

Apple, Inc.'s (NASDAQ: AAPL) iPhone 3G, which admittedly has a few issues, but is still selling like hotcakes, is stealing any thunder Android would have created. T-Mobile USA, the fourth-largest mobile operator in the U.S., may have an Android phone on the market sometime in September, according to TMoNews. Still, is it too late for Android to make a huge splash in the mobile pool?

When Google, Inc. (NASDAQ: GOOG) purchased wireless software development company Android years ago, its founder asked Google's co-founder Larry Page, "Is this interesting to Google?" It sure turned out to be, although the mobile phone operating system environment was announced almost a year ago and nothing concrete has shipped in a customer device yet. My bet is that Google isn't delaying development to fine-tune its software -- it's had years to do that and the money to boot.

The problem is the wireless environment in the U.S., for starters. The competitive landscape is so tightly controlled that Google's mantra of "open access" just won't sit well with wireless carriers used to telling customers what they can and cannot do with their phones. If you think U.S. consumers have control over their wireless lifestyles, a quick trip to Europe will dispel that notion pretty fast.

If Google really wants to make Android the ubiquitous, free and open mobile operating system it wants it to be, what are the alternatives to having partnerships with mobile carriers who will, of course, be afraid of Google? Google has bid on wireless airwaves before (only to have the goal of allowing open devices accessible to closed networks), but this time, I see it going down the mobile virtual network operator route, plain and simple. Although the MVNO model has largely failed in the U.S., Google doesn't have a national wireless network to operate. But with its large pockets, it sure can buy wholesale from the existing carriers and place its Android customers with service -- and then, give them anything they want. Like, mobile search results with ads next to them.

Google, Inc. (NASDAQ: GOOG)'s Android was really set up to be displayed at the Consumer Electronics Show (CES) this week. After such a high-profile and hyped introduction this past fall, it would have been very Apple-esque (as in, releasing products right after announcing them at Macworld) of Google to facilitate some kind of hardware product introduction for this month's CES in Las Vegas. But Google's in the software business, not the hardware business.

What Android product did show up at CES this week, then? Asian electronics manufacturer Wistron NeWeb was the sole supplier of any Android pre-release hardware product. The GW4 model, which reminded some of the ubiquitous BlackBerry handset, was on display this week sporting some common features from today's wireless handset manufacturing universe.

Google (NASDAQ: GOOG) had a very busy 2007 -- initiatives and projects, product launches and a furious growth rate that kept analysts guessing every single quarter. With so much going on at the world's most popular internet search engine, will Google lose focus on the bread-n-butter machine of its revenue -- web searches?

If Google would pour as much focus and resources into all its products as it does the constant refinements it gives its search-related advertising, the company would have many revenue legs to stand on (most likely). However, Google has a history of launching products to see how they do before dedicating too many resources to it. After all, it took years for text advertising on Google searches to produce billions in quarterly revenue. The more products prove themselves, the more attention they get.

What other products from Google will get more and more attention in 2008? The New York Times says that Google could eventually control 80% to 90% of internet searches, up from today's sub-70% level. Can Google really attain search engine growth to attain complete and utter domination of search?

If not, where are supplemental revenues going to come from? Google is lining up products to fill this void, but it can't lose focus on its core search business, even for a nanosecond. To fuel all the growth and the massive product launches from the company, the revenue will have to be there. Right now, that's all search -- and it must continue to be Google's main focus in everything it does.

Although Google (NASDAQ: GOOG)'s Android mobile phone software platform was officially announced months ago, the global wireless industry has been mum -- or doesn't know -- when Google's platform will be available for consumers. Which global wireless markets will be the first to even see a device powered by Google's Android platform?

Would it make sense for Google to release this platform in a market where consumers do most web surfing on a mobile device instead of a PC? Possibly -- although releasing Android in a market that has gadget-obsessed consumers may also be a decent choice. How about releasing the platform to a wireless carrier in a country where you're trying to take internet search engine market share away from a competitor?

Not only do hundreds of millions of Chinese wireless customers exist (more than the entire U.S. population), but many of them interact with the web on their mobile phones. Also, Google has made it known that it wants to become the largest search engine provider in the world's most populous country. That spot is now held by Baidu.com, which has managed to beat Google in China to this point. But Google -- ever the secretive tech giant of the world -- definitely has its sights set on leading the Chinese search engine market. How better than to release Android into that market and -- overnight -- up the ante in a huge way against Baidu.com's search engine dominance?

A week ago, the wireless division of Verizon Communications (NYSE: VZ) -- Verizon Wireless -- surprised the entire U.S. wireless industry by stating its intention to open its network to any compatible device running any phone-based application any customer wanted. In a country where wireless operators have been extremely close-minded about just about everything, this announcement sets the stage for things to come. The wireless industry is facing major changes.

Verizon trumped itself this week, announcing that Verizon Wireless would partner with Google (NASDAQ: GOOG) in its "open handset alliance." When Google announced its Android mobile operating system platform about a month ago, the web's largest search provider had lined up an impressive array of partners right from the start. Its goal: to remove all the "walled garden" roadblocks from mostly American wireless companies to allow any customer to use any phone on any network by guaranteeing cross-carrier compatibility. Now, technically, the two actual radio standards in use among wireless companies in the U.S. will need addressing, but that comes later.

Until then, Verizon is enjoying a plethora of good press in embracing Google's "open" access model. Perhaps Verizon recognizes that the wireless landscape is set to change soon and it wants to get in its good graces through a potential large competitor, Google. After all, Google announced its intention to bid on upcoming radio airwaves next month (with unknown ambitions at this time), so established telecom companies may see their world turned upside down in the next five years. After a controlled amount of competition and a tight control on the customer, these changes will be most welcome by customers -- and hopefully wireless providers.