Rumors has it that the Google branded gPhone is on its way. Now when exactly is a different story.

Our brothers at Engadget report that sources at the DigiTimes have said that Google will definitely be launching a handset. The mobile OS is rumored to be Linux-based. The only issue is that hardware specs, production facility, and operating partners are still getting worked out.

As for the handset design, Google is supposedly leaning towards a 3G device instead of a full EDGE compatible cellphone, this all leading to a first quarter 2008 release.

We suppose we will wait for the initial gPhone announcement before deciding on whether to drop some coin on Google's device or the iPhone.