Rumors: Google, Dell Plan to Launch iPhone Rival

There is growing speculation that Google has partnered with computer company Dell to launch a mobile phone to compete with the Apple iPhone.

Senior computer industry sources suspect that the companies will reveal plans in February at the 3GSM telecommunications conference in Barcelona. However, Google insiders deny the announcement.

Google is rumored to be launching its own handset, known as the "Gphone," to compete against Apple's iPhone, which launched in November 2007.

Google surprised the industry by announcing Android, an operating system for mobile phones. The software, available this year, will bring all of Google's online services to mobile users and make it easier for developers to create mobile applications that run on many different handsets.

At present, mobile phones use a variety of operating systems to access the Internet, including systems from Microsoft and London-based Symbian.

Dell also was planning to move into mobile phones in 2007, after poaching Motorola executive Ron Garriques to run its new global consumer group.

"It makes sense for Dell to have a high-profile entry back into the market because its last effort with PDAs pretty much flopped," said Strategy Analytics Director Neil Mawston.