Reports by the Wall Street Journal and other outlets cite sources close to Google stating that the company, known primarily for its online search functions, is expected to release a phone dubbed Nexus One that runs Google's Android operating system.
However, the company hopes to sell the phone directly to consumers, skipping mobile service providers, which often package their services with hardware from other companies.
That means customers will either have to use their existing mobile phone contract with the Nexus or arrange for a new one.
The new phones will reportedly be manufactured by Taiwanese phone maker HTC, reported TechCrunch, a technology blog. HTC already produces several phones that use Android.
With Google in the lead, the two companies developed Android, which relies primarily on Google's online services for mobile internet functions. However, until now, Google has always relied on other companies, like HTC, Samsung or Motorola, to provide network support and hardware.
Google recently reported in a blog entry that it was letting some of its employees test a new mobile device, but provided no further details.
The company is seen by many to be one of the up-and-coming players in the mobile phone market. Google believes it can leverage its strong position in online advertising to similar strengths within the mobile market.
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