Google goes after Apple’s iPhone with new Android software update for Nexus One.

Google is competing with Apple head on by adding “pinch-to-zoom” functionality to its new Nexus One phone. One of the biggest complaints after launching the device was that it lacked multitouch but a new software update answers that complaint.

Other updates included in the software refresh:

Google Goggles: Allows image search using the camera on Nexus One. This app will be available directly from the device after the software update is downloaded. It can be found in the All Apps menu.

Google Maps: Updates to Google Maps 3.4. Includes starred item and search suggestion sync, and night mode for Google Maps Navigation.

Improved 3G connectivity: A fix for some devices experiencing problems with 3G connectivity

Nexus One owners will get a message in their phone’s notification bar, alerting them to the new update. Use that notification to update the new software update. It will be a gradual roll-out to all phones. So hold your horses if you don’t have it yet.

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