"Google’s effort is different than the iPhone. They look to be focused mostly on the OS and layering Google applications like Maps and Gmail on top of that, while simultaneously talking to device manufacturers about a number of devices. Apple, instead, took a much more holistic approach in creating the iPhone. Google’s product likely won’t appeal to the mainstream audience that the iPhone attracts…but it probably won’t have a $500 price tag, either.
And just to throw another tidbit out there - the HTC exec that was mentioned on CrunchGear yesterday said Yahoo is on a parallel track as Google, and has actually been working on custom phones for longer than Google. We may be seeing a Yahoo phone next year, too."