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The stand-off between Apple and Google continues to twist and turn. Apple made some concessions last week, opening up its voice API to allow the web version of Google Voice to function on the iPhone. But it looks set to be aggressive in mobile advertising, where it recently acquired Quattro Wireless to enhance its activities in this area.

As Google and Nokia point to location targeted ads as a key growth area in 2010, Apple has warned iPhone and iPad developers that it will reject apps that incorporate location to deliver personalized adverts. Apps built with location aware features - using the Core Location framework - must provide "beneficial information", it says, according to a post on the iPhone Dev Center web site. "If your app uses location-based information primarily to enable mobile advertisers to deliver targeted ads based on a user's location, your app will be returned to you by the App Store Review Team for modification before it can be posted to the App Store," the post says.

Google will be hoping to make Android a platform that can outdo iPhone and deliver location aware and other advertising revenue back to Google. But its attempts to create its own-branded devices and distribution channel are not going smoothly either. The Nexus One, after a much-hyped launch, has disappointed in terms of user and developer experience, and early sales. In its first month, it certainly did not give Apple any sleepless nights, according to mobile analytics firm Flurry. This company found that Google sold about 80,000 Nexus One handsets in its first month on the market, only about 13% of the number the original iPhone sold in its debut month (600,000 units).

Apple it sold one million iPhones after just 76 days on sale in the US, while another Android big hitter in north America, Motorola Droid, reportedly shifted 525,000 in its first month.

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