Actually, they just outsourced the only hardware business they were in - building Google search appliances(PC servers) for businesses. They outsourced that to Dell. »www.my-esm.com/showArticle.jhtml···00000220
I don't think that they have any plans to get in to the hardware business for the reasonable future.
Hardware fabrication, yes. Google still retains the design piece. -- Everyday, thousands of new cars are delivered to their new owners with poorly-selected radio station presets.