In July 2005, Google acquired Android Inc., a small startup company based in Palo Alto, California, USA.Android's co-founders who went to work at Google included Andy Rubin (co-founder of Danger), Rich Miner (co-founder of Wildfire Communications, Inc.),Nick Sears (once VP at T-Mobile),and Chris White (headed design and interface development at WebTV).At the time, little was known about the functions of Android, Inc. other than that they made software for mobile phones.This began rumors that Google was planning to enter the mobile phone market.

At Google, the team led by Rubin developed a mobile device platform powered by the Linux kernel which they marketed to handset makers and carriers on the premise of providing a flexible, upgradable system. It was reported that Google had already lined up a series of hardware component and software partners and signaled to carriers that it was open to various degrees of cooperation on their part.More speculation that Google's Android would be entering the mobile-phone market came in December 2006.Reports from the BBC and The Wall Street Journal noted that Google wanted its search and applications on mobile phones and it was working hard to deliver that. Print and online media outlets soon reported rumors that Google was developing a Google-branded handset. More speculation followed reporting that as Google was defining technical specifications, it was showing prototypes to cell phone manufacturers and network operators.