Google's success story began with its convincing the phone makers to adopt its Android software. Android is available on 12 different phones and with many more devices coming up.

Sources say that Google is coming out with its phone by 2010, and that Google-branded Android phone will be sold directly to consumers. This action may upset certain mobile partners.

"How an Internet company will fare in the hardware market?" is also a question by some.

Apple, which is rooted in hardware design business, is currently the biggest name in the cell phone market, and on the other hand, Google has expertise in Web-based software that would, some believe, make it difficult for the company to translate the user's needs.

Motorola, which is struggling to mount a comeback and has built its new line of phone products around Android, does not appear to have many alternatives, said analysts.

But Deutsche Telekom's T-Mobile USA is all set walk with this market master by offering a subsidized version of the Google phone to U. S. consumers who agree to a wireless service contact with the carrier.

Google likely will reduce Apple's relative market share it will also cause the market to grow.