I heard sometime ago from here and there.. that Google was to launch some mobile phone, the ‘Google Phone’ to compete with Apple’s iPhone. Try searching Google Images for the term ‘google phone’ and see the results. You will find a lot of things.
But, I don’t think if Google ever launched something ‘hard’. I mean any gadget or hardware, except on April 1. 
So, I never thought of believing that Google could ever launch a phone.
Now, comes the latest news, that it is rather making some open source mobile operating system to compete with Microsoft Mobile. If Google comes up with something like that, which requires no license fee, its sure gonna give tough time to Microsoft.
We all know Google always has something special when it comes up with something. Just hope that at least one of these news is right.
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Don’t know whats going on with this google’s gPhone issues….
Today i again.. heard that its a phone which will be running on Opensouce LInux OS…
no confirmations yet…. keep watching…