Google Inc, the Internet search giant, stated that its engineers are developing new software for handheld devices and the company further has no plans to build mobile phones.

"We're not doing any mobile phone," Alan Eustace, senior vice president of engineering and research, said on Thursday at Google's office in Atlanta.

Google, Yahoo! Inc and Microsoft Corp are now on race to build up mobile products such as e-mail, online maps and other search engines to tap consumers that desire to surf the Web on the move. Mobile devices outperformed personal computers by more than four to one previous year, according to market research.