Investors Are Right to Be Skeptical of Google's Phone Launch

As the dust settles in the wake of Google's (GOOG) much-hyped Nexus One phone launch, consumers seem mixed about the new device. While some see the phone giving Apple's (AAPL) iPhone a run for its money, others find it nice but hardly groundbreaking. Investors, on the other hand -- who focus more on how the launch affects the company's strategy and earnings prospects -- seem firmly unimpressed: Shares of the search giant sunk 2.48% to $608.53 on the day after the announcement, an otherwise flat day for stocks.