Google plans to launch smartphones, increasing competitiveness for Apple

A new report from The Telegraph says that Google will be all set to manufacture it's own smartphones. Currently, Google works with phones makers like HTC, Nexus, LG and Motorola.

The report says that the company will launch the smartphone by the end of this year. With the phone Google will assume control over design, manufacturing and software. It doesn't detail much about the upcoming smartphone, cited a senior source at Google.

Majority of the smartphone market is dominated by Android, with four out of five phones using Android. Since Google doesn't have their own smartphone line, most of the phone makers modify Android before putting it in their phones but a few like Moto phones or Nexus phones come with an almost pure Android experience.

It seems highly unlikely that Google will close Android for others when it comes out with its own model. But if it does come out with its own smartphone, it will give Google an edge over others. The Google phone will help the company control how its OS can be best optimised.

At the IO conference this year, Google launched its virtual reality project named Daydream. While it's very much possible that Google may launch the VR headset simply for others to utilise, another possibility also makes sense that the company might have kept its own smartphone in mind while making Daydream.

Two of the major Android clients, Samsung and HTC, have already built their own VR headsets. And it would be poor planning on Google's part if it plans to give away its "high quality mobile VR" to smaller players in the market.

All in all, this move could possibly tighten Google's grip in the mobile software industry and compete directly with Apple.