Rumors have been circulating for some time, but now Google has confirmed that it is indeed working on at least one mobile phone. Isabel Aguilera, Google CEO in Spain and Portugal, said the company is working on a wireless phone as one of 18 research and development initiatives. The phone, however, doesn't sound like a competitor to Apple's iPhone, but rather a way for Google to make its way into developing countries. So, either the old rumors are wholly unsubstantiated, or refer to a completely different project. Safe bet: Google phones for emerging markets will be free.
For more on the Google phone:
- see this article from Engadget