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March 22, 2007 4:32 PM PDT

Analyst: Google doing mobile phone software, not hardware

by Elinor Mills
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Despite all the rumors and speculation about a Google Phone, the Web search company is working on software to run services on mobile phones rather than building its own phone, Gene Munster of Piper Jaffray says.

The Google mobile phone software would work with, not compete with, Apple's iPhone and other mobile phones, Munster wrote in a research note on Thursday reported on by Reuters.

The head of Google in Spain and Portugal confirmed last week that Google is working on a mobile phone, but she gave no details. Google spokespeople in the U.S have refused to provide further comment, except to say: "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."

There have been reports that the Google Phone would be a Blackberry-like device and that Google was partnering with Samsung, and other reports that Google was in talks with France Telecom Group's mobile-telephony division Orange. Google bought mobile software maker Android in 2005, among other mobile software companies.

Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service, and the Associated Press. E-mail Elinor.
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