Google to make its own smartphones

But here's the truth, according to a person briefed on Google's plans for the merger: while Google may have originally wanted to buy Motorola for its patents only, it has come to realize that it wants to follow Apple's lead when it comes to smartphone and tablet computer development. A second source, also briefed on Google's plans for Motorola, confirms this is true.

(Both sources declined to comment because each would like to continue being briefed by Google on its plans.)

Google now wants to design smartphone hardware, software, and make the sale.

To be clear: Google's ambition is not another Nexus One, a third-party manufactured smartphone it helped design from the ground-up in an effort to show all that Android could do. Google wants to do more. It wants to have its own iPhone business.