Maybe Google is creating its own mobile phone, A report from reuters confirm that some insiders have informed about the same. Nothing as firm as an official announcement came from the company.

From the Report “Mobile is an important area for Google,” Google spokeswoman Erin Fors said Friday.

“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.”

Gadget enthusiasts who only two months ago were obsessed with the potential revolutionary impact on the phone industry of Apple Inc.’s iPhone device — due out in June and at prices starting at $500 — have shifted their attention to whether Google is developing an even lower-cost phone.

In January, the gagdget famous blog Engadget released a photo claiming to be a prototype Internet phone with a wide, color screen designed by Google and built by Samsung Electronics Co. Ltd. This unconfirmed report replaced an earlier theory published by The Observer in December that Google was working with Taiwan’s High Tech Computer Corp. (HTC) on a mobile phone.A source at a rival Internet company who has talked to the same mobile phone manufacturers said Friday that “Google is going to build their own phone, whether it is with HTC or Samsung or some other ODM (original device manufacturer).” Windsor, the London-based Nomura analyst who tracks mobile phone handset makers like Nokia of Finland, argues that a Google Phone “will meet with limited success and lose money” because it lacks the necessary phone industry relationships to reach the massive scale needed to compete.