Piper Jaffray: Google could be developing mobile software not a phone itself

Market has been full of rumors that the search engine giant Google is apparently working on a mobile phone product which could provide cheap online access on the move.

However, Piper Jaffray analyst Gene Munster has said in a research note that the internet giant seems to be working on building software for Web search on cell phones and location-finding services. This could potentially be used on the upcoming Apple iPhone device.

Munster said in his report: “We believe Google is working with, not against, Apple in the mobile world.” Apple is due to launch their much anticipated Apple iPhone in June this year and Google has already stated in the past that they are working on some projects with the company.

Google spokeswoman Erin Fors was quoted as saying recently: “Mobile is an important area for Google. We remain focused on creating applications and establishing and growing partnerships with industry leaders to develop innovative services for users worldwide. However, we have nothing further to announce.”

Google certainly need to speed up development of their mobile tools as rivals Yahoo have already released their OneSearch platform for mobile devices.