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There have been plenty of rumors flying around but it has just recently been confirmed that Asus is working on a low cost smart phone called the Eee Phone. This follows recent comments by Asus CEO Jonney Shih at CES 2009 that the company was looking to develop simple, easy to use devices that can be “put in the pocket, play MP3s, offer GPS services, work like a PDA and offer Mobile TV altogether.”

Shih didn’t specifically say Google’s Android platform would be powering the device, though its zero licensing fees probably make it the way to go if they want to deliver a modern smartphone on the cheap. Not many details are available at this time, though the company executive did mention the Eee Phone would somehow be integrated to control a home full of Asus products. The company has more than proven its worth in the netbook market, with its popular range of Eee products, but just how well they will do in the mobile phone arena remains to be seen.