Google has again managed to become the talk of the technological world, this time with its plans to launch its own smartphone – rumored to have been named ‘Nexus One’ .

According to a report by The Telegraph, Nexus One is claimed to overshadow all current smartphones.

The news broke when Mario Queiroz, vice president of product management at Google, said in a blog post that Google workers are testing a device that “combines innovative hardware from a partner with software that runs on Android to experiment with new mobile features and capabilities”.

The blog post is reported to have been made a morning after Google workers had posted comments about the new phone to Twitter.

Wall Street Journal cited sources saying Google will sell the phone directly to consumers as soon as next year. According to the sources, Nexus One will run on Google’s own Android operating system.

Analysts have claimed that rather than making money from direct hardware sales, Google is aiming to gain access to valuable consumer data to be used for selling ads at premium prices.

Sources: The Telegraph, Reuters, The Independent