Well, we all, including myself, thought the announcement of a Gphone was just around the corner. Turns out, there is no such thing. What Google has been working on, however, is an open source operating system for mobile phones - Android.

While it does bear resemblance to the iPhone OS, don't forget that Android is open source, and so the development is completely different.

From the Google info page about Android:

The Open Handset Alliance, a group of more than 30 technology and mobile companies, is developing Android: the first complete, open, and free mobile platform. To help developers get started developing new applications, we're offering an early look at the Android Software Development Kit. [Android]