Google 'X Phone' to compete with Apple and Samsung

Google-owned Motorola plans to release a sophisticated new smartphone next year, the Wall Street Journal reports.

Google is putting its acquisition of Motorola to use by building a powerful new device known internally as the 'X phone' to compete with offerings from Apple and Samsung, according to a new report.

The Wall Street Journal reported that engineers at Motorola are working hard on the new handset, to be released some time next year. It will mark the first time that Google has built a phone with struggling Motorola, which it acquired for $12.5 billion.

Motorola will continue to produce devices for its carrier partner Verizon, while also devoting resources to the 'X' partnership with Google -- a partnership that will eventually include a tablet as well, according to the Journal.

The Journal charts the difficulties Motorola has had in creating the next-generation phone, from the negative effect of new features on battery life to the fact that the iPhone 5 beat them to the punch earlier in the year.

Google declined to comment.

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