Google Inc. is growing its own mobile phone, according to industry insiders and market analysts, while a Google official in Spain acknowledged recently that the company is investigating such a project.

A spokeswoman said Friday stated that Google is focusing on growing mobile services, but the company declined to speak further.

Gadget fans that only two months ago were gripped with the possible revolutionary impact on the phone industry of Apple Inc.'s iPhone -- due in June at prices starting approximately around $500 -- have shifted their interest to whether Google is growing an even lower-cost phone.