Googles recent share price jump to last week broke through the 600 USD has made stock pundits to predict 700 USD to be reached in next quarter. Some pundits are even predicting 1000 USD in near future and that's not a wishful thinking at all, reason for that is, Googles anticipated entry into mobile space next year.

Google is not done with internet only, they have already diversified from their core search business (cash cow) and is producing a long tail effect for them. Now after dominating the internet, the search giant widely tipped to be launching a mobile phone next year to take the mobile communications market by storm.

As this report published in independent say:

Quote :

Lehman analyst Douglas Anmuth believes that Google will launch a mobile phone in February next year that will be similar to the recently launched Apple iPhone in that it will have "an oversized screen perhaps around 3in diagonal and with touch display" plus WiFi capability. Google's main differentiator will be on price – its phone is expected to sell at a fraction of the $400 iPhone.

According to Mr Anmuth, the device will be a simple "plain vanilla" smartphone that can be manufactured for $120-$160. But he adds: "We believe a Google phone could be marketed at a price point below $100, and potentially even be free."

The incentive for Google to offer a free phone is the online advertising revenue the company could generate with an internet-enabled mobile device. Lehman Brothers also thinks it probable that Google will follow in Apple's steps by adopting a revengoogle phone, gphone, wifi, gprs, voip ue-sharing model with the carriers, and predicts that Orange will be the most likely mobile operator partner for Google in Europe.

To give more insights why this is not a mere rumor, in US Om Malik at GigaOm has already published this five facts about google phone. In concise form these are

1. Google Phone is mobile version of Linux and will Java virtual machines.
2. All applications that are supposed to be java apps.
3. The user interface is said to be done in Java and is very responsive.
4. There is a special browser which has pan-and-browse features that are common to modern browsers such as browsers for iPhone and Symbian phones.
5. Initially there was one prototype, but over past few months Google has the mobile OS running on 3-to-5 devices, most of them likely made by HTC, a mobile phone maker, and all have Qwerty apps. The model that folks have seen is very similar to the T-Mobile Dash.

And to give you the pictorial view of how it might look like engadget has this photo shown above.

More on this can be read at Independent, Gigaom, and Engadget