Google and Motorola challenging Apple and Samsung with the new ' X Phone '

engineers at Motorola Mobility which was purchased by Google are working on a handset codenamed "X-phone", aimed at grabbing market share from Apple Inc and Samsung Electronics Co Ltd, the Wall Street Journal said, citing people familiar with the matter.


Google acquired Motorola in May for $12.5 billion to bolster its patent portfolio as its Android mobile operating system competes with rivals such as Apple and Samsung.
a media report said Friday. Google has a team of engineers at Motorola developing the new device, which is expected to be introduced sometime next year, The Wall Street Journal said, citing unnamed sources. Shares of Google Inc were down nearly 1% in afternoon trades. Apple was down as well, off 1.2%.

Motorola plans to enhance the X Phone with its recent acquisition of Viewdle, an imaging and gesture-recognition software developer. The new handset is due out sometime next year, the business daily said, citing a person familiar with the plans.

The previously undisclosed development effort is a key facet of Google's strategy for boosting the minuscule market position of the cellphone pioneer, based partly on bolstering quality while reducing the quantity of Motorola products.

Motorola is primarily working on two fronts: devices that will be sold by carrier partner Verizon Wireless, such as the "Droid" line of smartphones, and the X phone, these people said. Motorola is also expected to work on an "X" tablet after the phone, the people added.