The first announcement about the much-awaited phone was made on Google’s official blog. A post on the blog mentioned: “We recently came up with the concept of a mobile lab, which is a device that combines innovative hardware from a partner with software that runs on Android to experiment with new mobile features and capabilities, and we shared this device with Google employees across the globe. This means they get to test out a new technology and help improve it.”

It has been reported by various sources that the phone will be made by Taiwanese manufacturer HTC and Google is entirely responsible for the design of the phone. Moreover, Google plans to launch the smartphone directly to consumers without a mobile carrier partners. This interesting strategy could potentially challenge the existing business model of the mobile industry.

Although Google has not officially confirmed the details about the launch of the smartphone, the Wall Street Journal wrote that it could go on sale as early as next year.

Recently, Google's mobile operating system, Android phones have gain popularity in the mobile industry. Mobile phone manufactures, such as, Motorola, Sony Ericsson and Dell (PC maker) chose Android over Windows and Linux based operating system, to power their new high-end smartphones - such as the Motorola Droid and Sony Ericsson Xperia X10.