Google Inc took the wraps off of a new Web-enabled smartphone on Tuesday that the Internet giant will sell directly to consumers.

The phone, dubbed the Nexus One, marks the first time that the 11-year-old company has designed and sold its own consumer hardware device, and could provide Google with a viable challenge to Apple Inc's popular iPhone.

Google said at a press event at its Mountain View, California, headquarters on Tuesday that the phone will run the 2.1 version of its Android operating system software and will feature a 3.7-inch (9.4 centimeter) touchscreen display.

Google worked closely with HTC to develop the phone, which uses a 1 gigahertz Snapdragon processor from Qualcomm Inc. The Nexus One is 11.5 millimeters thick and weighs 130 grams, the company said.

Google is the world's No. 1 Internet search engine, with annual revenue of roughly $22 billion in 2008.

Its shares were down $1.97 at $624.78 on the Nasdaq.

(Reporting by Alexei Oreskovic; Editing by Steve Orlofsky)

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