Google is planning a shake-up of the smartphone market by releasing its own handset, a move that would tighten its grip on cellphone software and see it compete directly with the iPhone.The technology giant is in discussions with mobile operators about releasing a Google-branded phone that will extend the company's move into hardware.Google already develops the Android operating system that runs on four in five smartphones and endorses a range of phones made by partners such as LG and Huawei under the Google Nexus brand.But, unlike Apple, it leaves manufacturing to other companies such as Samsung, with the company concentrating on developing the free software that runs on its phones.A senior source said the new device, which will be released by the end of the year, will see Google take more control over design, manufacturing and software.The proliferation of Android device makers, many of which apply the software differently, means Google has struggled to ensure consistency, with some smartphone owners waiting months for updates and some manufacturers relegating Google's own internet services included in Android.Its own phone would allow Google to control the software, securing the future of services such as the Google search engine and Google Play app store."They are concerned that Android is fragmenting, that it needs to become a more controlled platform," said Ben Wood, an analyst at CCS Insight."I think they'll seek to control it more, more like Apple."Google is best known for its internet software but has taken steps into hardware in recent years by releasing its own tablet computer, laptops and other gadgets.Earlier this year it hired Rick Osterloh, the former president of Motorola, to lead a new hardware division.CEO Sundar Pichai said last month Google is "investing more effort" into phones, although he said the firm would continue to support Nexus smartphones, which are made by Taiwanese company HTC...