A blog post from a Google executive on Saturday morning dropped hints that the company would release a Google Android phone of its own.

In the post, Mario Queiroz, a Google vice president of product management, said the company had developed a "mobile lab" device that "combines innovative hardware from a partner with software that runs on Android." According to Queiroz, Google has distributed the device to Google employees worldwide so that they could test the new technology and help improve it.

Quieroz's announcement came only a few hours after reported sightings of the device. CNET TV Associate Producer Jason Howell, who had a very brief hands-on with the gadget Friday night and first relayed the news on Twitter, confirms that the "mobile lab" device is an HTC phone running the Android 2.1 operating system.
Reports that Google would release its own Android phone first appeared earlier this year. The move is significant, as it could pit Google against the carriers that it so far has used to distribute existing Android phones.

Source: CNET