While Google already sells phones under the Google Nexus brand, it partners with other companies for the manufacturing of those devices, concentrating more on the software side.
The new device, which will be released by the end of the year according to a senior source, will see Google take more control over design, manufacturing and software.
A self branded phone would offer Google more control of the device, secure the future of its services and minimize fragmentation. It may also be a response to EU accusations that the company is in breach of antitrust rules, abusing its dominant position by imposing restrictions on Android device manufacturers and mobile network operators.
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