The rumors are true after all. The much speculated Google manufactured mobile handset will soon be available to eagerly awaiting customers. Until now, Google merely built the Android operating system used by a number of handsets. Lately, with the growing use of the Google search engine on mobiles, the company seems to be feeling uncomfortable with Apple’s apparent “power over consumers’ behaviour”. So, along with Taiwanese HTC, Google has manufactured some sets and is testing them in-house.

Primarily these handsets will be unlocked and operable on GSM networks; they will run on the Android operating system, be slimmer than the Apple iPhone and have a slightly larger touch screen. This Android phone or ‘Nexus One’ may be on sale as early as January next year.

The challenge being faced by Google now is the Marketing mix strategy including pricing and imaging of this phone. Though the company’s previous shifts have been quite successful, there have been instances - such as Microsoft’s success with Xbox, and its subsequent failure with Zune which couldn’t stand up to Apple’s iPods, that are a bit of a dampener.

As for the pricing, it will have to compete with the subsidized handsets offered by wireless carriers.