update--The head of Google in Spain and Portugal has confirmed that Google is working on a mobile phone. "Some of the time the engineers are dedicated to developing a mobile phone," Isabel Aguilera is quoted as saying on the Spanish-news Web site Noticias.com.
A Google spokeswoman in the United States released this statement when asked for comment: "Mobile is an important area for Google and we remain focused on creating applications and establishing and growing partnerships with industry leaders to develop innovative services for users worldwide. However, we have nothing further to announce."
Google stateside … Read more