HOST: Google shares closed down 8 percent today after the company reported quarterly earnings that fell well short of analysts' expectations. KQED's Peter Jon Shuler reports the smart phone market is posing a challenge for Google.
 
PETER JON SHULER: Excluding costs, Google's profit slid to $9.03 per share, down from $9.73 a year ago. Wall Street analysts were forecasting earnings of $10.65 per share. One reason for the lower earnings is that when customers click on the ads on Google's PC based search engine, advertisers are paying 15 percent less than they were a year ago. That's because consumers are moving to mobile devices. Google executives defended the company's performance and said they're on track to generate ad revenue on multiple devices. I'm Peter Jon Shuler, KQED News.