Web search giant Google officially announced its own smartphone, the Nexus One on Tuesday ending months of speculations.

Nexus One was designed by HTC and boasts of having the latest Android mobile operating system – the Android 2.1.

Also announced is the Google Phone Marketplace. Google was not satisfied with just becoming an operating systems and software developers, it also wants to become a retailer of its own products. The site currently sells only one product obviously and that is Nexus One. The price is $529.

The phone can also be bought for $179 in a two-year contract with T-Mobile.

The specifications almost match the speculations that were written about it before. The list is as follows:

• Android 2.1 operating system
• 3.7-inch display
• 1GHz Snapdragon processor from Qualcomm (very fast)
• 480 x 800 OLED display (for brilliant colors and deep contrast)
• 5-megapixel camera with LED flash
• Audio stereo Bluetooth
• Active noise cancellation using two microphones
• Live-action wallpaper that responds to your touch
• Google Maps navigation
• Improved Facebook integration