There have been plenty of rumors flying around that Asus was going to be working on a low cost Eee netbook that is powered by Android. Well now we are sure that they will be working on a low cost Eee phone that of course is running the Android operating system.

So far Asus has more than proven their worth in the netbook market, but just how well will they do in the mobile phone market against companies such as Motorola and HTC? Asus head Jonney Shih told the New York Times that the forthcoming Eee phone would be integrated to control a home full of Asus products including the Eee Top touchscreen PSs.

There were not too many details about the Android-powered handsets, but the New York Times do not lie or spread rumors. With Asus capable of making los cost products combined with Android’s zero cost licensing fees we suspect a very respectable phone and a great price.

[Via NYTimes]