Fortune's Magazine own blog, Tech Daily Report, got news from a UBS analyst, Benjamin Schachter, that a first batch of 50,000 Gphones will come out of Taiwan-based manufacturer HTC by the end of the year.
The phones will be built around Google's proprietary platform. The phones are apparently not destined to be sold and will probably be used for internal development and beta testing - although the size of the shipment will make it nearly impossible for Google to prevent any leaks.
HTC has a long story of producing mobile phone for third parties. It has been doing so with Orange for a number of years already and has only recently started to crack the market with phones of its own.
However, partnering with Google will move it up the food chain as the search giant will probably be the one approaching the networks.