Google is working to develop an in-house smartphone that will be launched sometime later this year.

According to Android Headlines, it is certain that, among various offerings out there, Google's mobile operating system is at the top. However, when it comes to the actual hardware, Google has next to nothing to offer so far.

The Nexus devices are close to a Google smartphone, but they still have little input on the device design. This situation might change soon, according to rumors reported today by the Telegraph.  Sometime later this year, Google will be releasing an in-house handset, aiming to rival Apple in the market for a premium device.

Even if this is still just a rumor, it is not the first time when it was speculated that Google is looking to gain a little more control of the Android OS. The freedom to do just that would certainly come with a device that is built in-house.

More control over the OS might be, in fact, the main reason for Google's willingness to produce their own handset. The company would be able to control all the aspects of the device, much like Apple does with each and every iPhone.

According to the 9To5Google, the Mountain View company is already discussing with various mobile operators about launching a smartphone under their own name. However, at this point in time no carriers have been mentioned.

Google still plans to work with partners on devices that will launch under the Nexus brand and to continue supporting the efforts of the Nexus program. But the in-house Google smartphone could serve the company's purpose to compete with the iPhone in terms of premium software and hardware with a less fragmented approach.

An actual Google handset shouldn't seem too far fetched, considering Google is re-hiring former Motorola President Rick Osterloh. It is also possible that Google could end up pushing HTC made this in-house device.