Unfortunately, if you have had the pup for more than a few days and he is still frightened of everything, he may always have a fearful side to him. Sounds like the breeder did very little (if any) socialization with this pup. Most pups will have fear responses, but will come out of it within a few minutes. This pup sounds well beyond that point.
You need to keep things positive with this pup..as he matures, if he acts afraid, do not coddle him and say things like "it's OK" and pet him soothingly..this will only reinforce the fear response and behavior. If he acts afraid, ignore him or redirect his attention and only give him praise when you see a confident positive response. As he becomes more confident, expose him to as many people, sights and sounds as possible... keep positive and remeber not to soothe him if he acts afraid. If he is so fearful that he is trembling and backing away when he is older, I would be very careful where you take him...he may become a fear biter if he feels cornered.
If this is your first AB, I highly recommend you get him into puppy classes and work with a trainer as he matures. The earlier you start, the better chance you have of pulling him out of fear.
Do you know who the breeder is, and what bloodlines this dog comes from? Just curious.