The New York Times lets the latest on the gPhone saga out of the bag, with a new article looking at Google plans for the mobile space. In essence Google has only been showing of prototype phones for it’s new mobile Linux based OS, that it aims to open source and possible license out to other hardware and phone manufacturers.

For more than two years, a large group of engineers at Google has been working in secret on a mobile phone project. [...] 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.

An unnamed Industry executive is quoted as saying Google will open source the new mobile operating system in order to “take the economics out of the Windows Mobile business.”

(Via MobilityBeat)