iPodNN | Google aims to have native iPhone apps at launch:

Google intends to be early with the development of native iPhone 2.0 applications, according to the company’s vice president of engineering. “We expect to have applications at Day One,” says Vic Gundotra, in reference to June’s expected launch of the App Store and the iPhone 2.0 firmware. Although Gundotra refuses to comment on the details of particular software, he notes that development of web applications will continue in parallel, because these can be continually updated and improved without requiring a new download. “It’s the best of both worlds,” commments Gundotra.

Ohhhhh man, I hope Google Reader’s included.  I’d love some local caching capability!