Google is today set to launch its own mobile phone, placing the search giant in direct competition with Apple’s iPhone smartphone.

Called the Nexus One, the smartphone is likely to be unveiled at an event at Google‘s headquarters in Silicon Valley. It will run on Google’s Android operating system and according to reports will be available for around $530 (£330) if not tethered to a network or about $180 (£110) with a two-year T-Mobile contract. It is believed that the Nexus One will initially only be available in the US.

Early reports have suggested that the phone will run Android 2.1 and has a 9.3cm (3.7in) screen and five megapixel camera.

The smartphone market it already awash with Android devices from the likes of HTC, Motorola and Samsung, but this moves sees Google take a greater role in the design process. According to a report in the Guardian the firm decided to oversee the development of the phone itself and has been testing it behind closed doors for a number of months.

The launch of the Nexus One will create more competition in the smartphone space. While Apple is said to lead the way with its iPhone device, offerings from the likes of BlackBerry-maker RIM, Nokia and Motorola have crowded the market.

The launch of the Nexus One comes on the eve of the Consumer Electronics Show (CES) in Las Vegas. This annual tech extravaganza will host an estimated 110,000 people and see the launch of 20,000 new products. This announcement also jumps the gun on rival Apple, who are also believed to be readying the launch of a new product. Recent media reports have indicated that the firm will unveil a new touchscreen computer later this month.

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