?The essential point is that Google?s strategy is to lead the creation of an open-source competitor to Windows Mobile,? said one industry executive. ?They will put it in the open-source world and take the economics out of the Windows Mobile business.?

The GPhone (Google Phone) is not going to be a second iPhone. Google’s main goal is to extend its reach from online advertising to the mobile Internet. The first official prototypes of the Gphone is expected later this year and they could be on shelves early next year.

So what’s all the hype if theres no phone? The Gphone could reduce the skyrocketing costs of mobile phones by giving manufacturers and/or carriers revenue from mobile advertising. Another possibility is free calls and/or messages.

Aside from what’s looking like a huge marketing ploy, there’s rumors that Google will offer mobile versions of their applications which will be running on a Linux-based operating system (am I hearing GLinux in the background?).While Google has built phone prototypes to test its software and show off its technology to manufacturers, the company is not likely to make the phones itself, according to analysts.

You can read more about the issue on the International Herald Tribune