Google is set to develop its own mobile telephone and wireless Internet device to rival that of Apple's iPhone. The technology community`s nickname for the Google project is called gPhone. However it is not creating the telephone for sale, but they are hoping to persuade wireless communication systems and cellular telephone makers to use their own software in this device.

The plan of action is to have Google offset the advertising costs of manufacturers to make the devices more appealing to companies to climb on board.

According to Byron Acohido of the USA Today, ?Google`s widely anticipated -- and top secret -- GPhone mobile phone project could trump Apple`s glitzy iPhone -- by going low cost and low tech.?

Google recently acquired Finnish company Jaiku who held a number of Short Message Service Patents (SMS), which is the technology that enables the exchanging of short messages between cell phones.

Google currently holds a 29% share of the US Market over 16% to Yahoo according to internet marketing research firm eMarketer, and would like nothing more than to control the mobile device market such as cell phones, blackberry's and more, including their own GPhone.

On this news Google's stock rose to a whopping $600 per share recently, speculating that Google's profits may climb to as high as 50% over last year's numbers.

Acohido reports that, ?Richard Doherty, research director at The Envisioneering Group, claims Google is driving toward getting device makers to produce basic handsets equipped with a "Gbutton" that takes users right to a Google texting screen.? According to Doherty, ?Their goal is to get GPhone texters in the habit of querying its vast databases for directions, phone numbers, movie times or restaurant tips and woo advertisers to sponsor GPhone-delivered answers.?

Apparently the hush-hush top secret project by Google (said tongue in cheek of course), is already in a phase where a model is being designed with rumors abound that includes a Google browser and access to Gmail and YouTube (both of which are Google operated).

The first question that all consumers will ask is of course, the cost. As we all remember the iPhone was introduced at a whopping price of around $600, only to have weeks later, Apple irritate its customers by dropping the price $200 after the initial buzz of the device wore off.

Google insiders claim that the GPhone will be offered at a fraction of the cost of the iPhone, Blackberry and Palm Trio. The reason why they can offer it low is Google's ability to offer advertising to companies, but one drawback according to Acohido, ?cell phone carriers want a cut of the advertising revenue?. A cut that many say Google isn't ready to let go, just yet.

Although nothing has been released as far as an agreement between Google and a cellular provider, manufacturers are said to have devices ready to go and according to Acohido, ?could be ready to be on the shelves in a matter of weeks.?

The Gphone will be aimed to the younger consumer, so if you are an early 20-something or you have teenagers, chances are this may be the next hot item on it's way just it time, of course, for Christmas.

By: Bruce A. Tucker