Exclusive retailers gear up for the latest Android

The two retailers said they would be the exclusive sellers in those two markets of the Nexus S, which supports a technology that lets people use their handsets instead of credit cards for payments. They started taking pre-orders yesterday.

Google's Android software has rapidly overtaken Apple and BlackBerry to become the second most popular platform worldwide after Nokia's Symbian, and the most popular in North America and east Asia.

Offered free to cellphone vendors since coming to market two years ago, Android has helped to fuel a boom in the smartphone market, which is expected to double this year to about 340 million units. This has helped to drive down prices.

The Nexus S will include an NXP near-field communications chip, which allows consumers to pay for items by tapping the phone against a special terminal.

NXP, a pioneer of and leader in NFC technology, announced a strategic collaboration with Google to provide a complete open- source software stack for NFC.

In Britain, it will cost 549.95 unlocked, or will come free with a contract of 35 per month for a term and with an operator yet to be announced.

The previous flagship Google Android phone, the Nexus One, was made by Taiwan's HTC. Samsung has also produced a tablet computer based on Android, the Galaxy Tab.

Telecoms research firm CCS Insight said: "Deals with Carphone Warehouse and Best Buy underline the importance of independent distributors beyond operators to Google.

"Despite the initial failure of Nexus One, Google's intent clearly remains unchanged."

US consumer electronics retailer Best Buy and British mobile phone retailer Carphone Warehouse have a joint venture in Europe that includes stores in Britain, and a chain of Best Buy Mobile stores in the US. The booming smartphone market shows no sign of slowing but manufacturers will have to fight hard to keep their customers as smartphone owners show little loyalty to their current brands, a survey showed last year.