Google announced a new line-up of mobile devices, using alliances with South Korean electronics makers Samsung Electronics and LG Electronics to step up a challenge to Apple tablets and smartphones.

The new phone, developed with LG, is called the Nexus 4 and boasts a 4.7-inch display and tools for sharper photo taking, California-based Google said yesterday in a statement.

A new tablet, made by Samsung, is called Nexus 10 and has a higher resolution screen and costs $399 to $499, depending on how much storage it includes.

Both are part of the Nexus line of electronics, which showcase the most advanced features of Google's Android software.

Google has expanded into mobile software and hardware to lessen its dependence on Web search and widen a beachhead in the growing market for advertising on wireless devices.

Based on second-quarter results, the company is on pace to generate $8 billion in mobile-ad revenue on an annual basis, Google said October 18.

While Android has the biggest share of smartphone software, Google lags behind Apple in tablets.

"Google's big problem at the moment is that Android, unlike in smartphones, is not really going anywhere in tablets," said Carl Howe, an analyst at Yankee Group in Boston.

"It's struggling to figure out what it wants to be."

Google also added features to the Nexus 7, an Android tablet with a 7-inch screen introduced with Taiwan's Asustek Computer in June.

Google said the price of the 16-gigabyte version dropped to $199 from $249. It also added a $249 edition with 32 gigabytes of memory. A $299 version will feature access to wireless networks, including AT&T.

LG shares rose 1.6 per cent to 76,200 won as of 11.57am in Seoul trading, while Samsung was unchanged.

Google was scheduled to introduce the device in New York yesterday, but was forced to cancel the media event because of Hurricane
Sandy.

Bloomberg