A detailed article, published on the NYT, talks about the so called gPhone or Google Phone. This phone is not likely to be the second coming of the iPhone because Google’s goals and expectations are very different from Apple’s.

Google wants to extend its dominance of online advertising to the mobile Internet, a small market today, but one that is expected to grow rapidly.
It hopes to persuade wireless carriers and mobile phone makers to offer phones based on its software, according to people briefed on the project. The cost of those phones may be partly subsidized by advertising that appears on their screens.