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Google (GOOG) Postpones Phones Due To China Issues

January 19, 2010 10:57 AM EST
Google Inc. (NASDAQ: GOOG) announced that it postponed the launch of two mobile phones using its Android operating system, amid the controversy over the nation's Internet censorship and recent e-mail hacking.

The company said that it would "not be a good decision" to debut the phones right now after the recent events and continuing battle between the company and the Chinese government.

The phones were set to be launched at a ceremony on Wednesday with local wireless carrier China Unicorn, but have been delayed according to Google spokeswoman, Marsha Wang.

The two phones were made in partnership with Samsung Electronics Co. and Motorola Inc. (NYSE: MOT). Motorola is in need of a win with the Android operating system and pulling the phone out of China for the time being will cost the companies the world's largest mobile phone market.

The move is the latest fallout from the cyber attacks on Google that have been traced back to China and that the Internet search company will stop censoring content on its Chinese Web site, which may result in the company pulling out of the country completely.

Chinese Foreign Ministry spokesman, Ma Zhaoxu's said Tuesday that foreign companies that wish to do business in China should respect the laws and regulations in the country, adding that "Google is of course no exception."

The phones set to be launched did not include the new Nexus One.

Shares of Google are up $1.83 to $581.83 in early market trading.

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