In the gadget world, there have long been rumors about Google's plans to get into the mobile phone market. Well, it looks like Google isn't building phones just yet, but they are working on a mobile operating system called Android.

The first Android phone, the T-Mobile G1, comes out next month. It's priced at $150 and will be stacked with the following features:

-- Slide-out keyboard (great for anyone who's failed at typing on an iPhone)
-- Three-inch touch screen that works either vertically or horizontally
-- Wi-Fi, Bluetooth and GPS
-- Downloadable apps, including a link to Amazon's DRM-free MP3 music store
T-Mobile is the first Android partner, but other companies plan to use the operating system, too.

Should the iPhone be nervous? Not quite yet, but your Super Mario skin is looking a little pallid. [via Uncrate]