Google has denied reports it is to make any moves into the PC sector. The rumours of a low-cost Google PC first surfaced following an article in the LA Times which quoted sources as saying the search giant was in talks with Wal-Mart and other retailers with a view to selling a Google computer. In an interview with the Silicon.com website, a Google spokeswoman quashed the idea that the search company had its eye on the personal computing market.

"It would be an extraordinary but not impossible step for Google to leap into the hardware device side. The LA Times story is completely untrue," said a Google representative, adding the company would prefer to work with its existing partners on PCs.

When queried over any plans Google may have to move into the wider hardware space, the company spokeswoman refused to be drawn.