Isabel Aguilera, Google’s Spain and Portugal chief executive had admitted that there are 18 research and development initiatives taking place, one of them being mobile-related. The phone is expected to be a touchscreen and not have any buttons. The phone is also expected to integrate Google Talk into its operating system as well.
The statement about Isabel Aguilera was made on Noticias.com. I found this information via Engadget. And lastly, below is a suspected screen shot of the device: