Google: Android Phones Coming This Year

Updated from 1:37 p.m.

Google(GOOG Quote) says it will have an Android-powered phone on the market in 2008, rebutting a source's claims to the contrary.

According to a source familiar with the situation, although a large number of people are hard at work on the Gphone and the open-source operating system/platform for mobile devices (Android) the actual Gphone will not be ready for release this year.

That would mean that Apple's(AAPL Quote) second-generation iPhone, and the ever-growing list of about-to-be-released handsets (like the Garmin(GRMN Quote) nuviphone, Research In Motion(RIMM Quote) Blackberry Bold and Thunder, Sprint/Samsung Instinct and SonyEricsson Xperia) will now have a huge head-start over the Gphone.

However, a Google spokesperson says "We're still on track to announce Android-powered phones this year. Some of our partners are publicly stating that they plan to ship Android phones in the fourth quarter."

Even More Ideas for the Next iPhone and BlackBerry

The source on the initial story would not speculate on the possibility that other devices that might run on variants of Android would be ready in time for the Christmas shopping season, nor would the source elaborate on exact reasons for the delay or a possible release date for the Gphone or various Android variants.

Android, based on the Linux operating system, is being jointly developed by Google and the Open Handset Alliance. The 34-member group includes mobile operators (China Mobile(CHL Quote), NTT DoMoCo(DCM Quote), Sprint Nextel(S Quote), T-Mobile(DT Quote), Telecom Italia(TI Quote), Telefonica(TEF Quote)), software companies (including eBay(EBAY Quote), Google, Living Image, NMS, Nuance Communications, PacketVideo, SkyPop), semiconductor companies (including Broadcom(BRCM Quote), Intel(INTC Quote), Marvel(MRVL Quote), Nvidia(NVDA Quote), Qualcomm(QCOM Quote), Texas Instruments(TXN Quote)) and handset manufacturers (HTC, LG, Motorola(MOT Quote) and Samsung).

Missing from this impressive list of Android companies are some very well-known cell-phone leaders AT&T, Nokia(NOK Quote) and Verizon's(VZ Quote) Verizon Wireless.