Google has postponed the launch of two mobile phones in China which use its Android platform, in the first sign its business in the country is starting to be affected by a dispute over hacking and censorship. The manufacturers of the telephone, which was scheduled for launch in China on Wednesday, are Motorola and Samsung Electronics Co Ltd, and China Unicom would have been the carrier, a Google spokeswoman said.

A source familiar with the situation said Google Inc wanted customers to have a "positive experience" with the product, but felt that would be difficult considering the publicity surrounding the company in China at present.

Copyright Reuters, 2010