<< While the global adoption of the Android platform has exceeded our expectations, the web store has not. It’s remained a niche channel for early adopters, but it’s clear that many customers like a hands-on experience before buying a phone, and they also want a wide range of service plans to chose from.
So today we’re announcing the following changes:
More retail availability. As we make Nexus One available in more countries we’ll follow the same model we’ve adopted in Europe, where we're working with partners to offer Nexus One to consumers through existing retail channels. We’ll shift to a similar model globally.
From retail to viewing. Once we have increased the availability of Nexus One devices in stores, we'll stop selling handsets via the web store, and will instead use it as an online store window to showcase a variety of Android phones available globally. >>
I don't think google phone can beat iPhone.
if they are pulling the web store, does that mean we can look forward to AT&T selling the Nexus One? Subsidized?
I don't know specifically about AT&T, but – yes, that means Google abandons sales of the unlocked model in favor of sales by network providers (and similar) presumably in locked, "subsidized" state. Observe the non-ironic quote marks.