The launch of Google's new Gphone, powered by Google's own software, is alleged to be delayed till the end of 2008; however Google maintains that the handsets will be released in the fourth quarter.
The director of mobile platforms at Google claimed that the Gphone requires the support of mobile operators and handset manufacturers which is why the project is taking time.
Google, with its newly designed operating system called Android, reckons that it will generate more revenue, as the system will enable the users to access Internet on their mobile phones.
Presently, the search engine is under great pressure to launch its Gphone as soon as possible, because its main rival, the Apple's 3G Iphone, is all set to hit the mobile market by the 11th of July.
With an alliance of around 30 partners, Gphone is expected to provide greater user control but unlike Apple, Google doesn't have full control over the hardware side which could potentially give rise to compatibility issues.
But any delay will sure benefit Apple and other rivals like Windows-based phones, Blackberrys or Palm.