Google once again denied rumors that she is preparing a smartphone under its own brand. Project Android stated that Google would be unfair to compete with their own customers, so Android will continue to be the only project of Google's smartphone market, and use it will be third-party vendors.
If Google can start to create their own hardware-solutions, it could damage relations with many traditional partners, including HTC, Motorola and other manufacturers. Especially harmful can be a gap with Apple, because the iPhone is closely linked to the various services Google, such as Maps and YouTube.
Google does not have much experience in developing hardware and experience with T-Mobile G1 on the negative rather than positive.