Google shoots down mobile phone rumors

Looks like Google Inc. (NASDAQ:GOOG) may not be producing the rumored Google-branded mobile phone after all -- even after a European Google exec recently hinted at the search giant's plans to enter the mobile phone hardware (and software) business.

Our friends over at Engadget just posted on this, quoting a Google exec from Southeast Asia who concludes that the company may get into the mobile handset business someday soon -- but on the software side of things. This makes sense, since the mobile phone handset market is already so crowded from the low end to the bleeding edge that it would make very little sense for Google to enter a hardware market where such a large investment may never fully pay itself back.

On the software side of things, however, Google's trademarked simplicity would probably be sought after by mobile phone users everywhere, which is why many Apple Inc. (NASDAQ:AAPL) fanatics and normal, everyday cellphone users are probably waiting on pins and needles for the new Apple iPhone to be released. If Apple holds true to form, the new iPhone will be one of the easiest handsets ever to use in terms of user interface. Can Google be far behind?