Update: It might just be a VoIP phone.
Forgive us if we don't take this one at face value. Michael Arrington over at TechCrunch says there is a Google-branded phone in the works. They don't have many details except that it will be heading to market in January, and that is only because it is taking longer than expected.
Sure, they might be doing another level of co-branding like Microsoft is doing with Sharp on their Pink phones. But they've already gone down that road. Verizon