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Google Preparing Phone to Rival Samsung and Apple

Motorola engineers are working hard to complete a sophisticated handset that internally is known only as “X Phone.” However, the unit of Google is having some problems and running into obstacles as it attempts to provide stronger competition for Samsung and Apple, said people close to the project.

Motorola was acquired seven months ago by Google at a cost of $12.5 billion and is designing its top handset with features that are cutting edge to make it stand apart from the other existing smartphones when it is unveiled during 2013, the same people indicated.

However, even though Google is known for its swift execution on the Internet, its newly acquired hardware unit has encountered hurdles that are associated with management of the supply chain and manufacturing that caused Google to rethink original plans for the “X Phone” like using a screen that was bendable, added the people.

Motorola is working primarily on two different fronts: gadgets that that Verizon Wireless, its carrier partner will sell like its line of Droid smartphones and the yet to be completed X Phone. In addition, Motorola is going to work on a matching “X Tablet” following the launch of the phone.

Google, at the same time, must manage its complex relationships with makers of smartphones that use its software Android for their mobile devices. This is particularly complicated with Samsung Electronics, a rival of Motorola that is now the world’s No. 1 maker of smartphones thanks to help from Google.

Dennis Woodside is the new CEO of Motorola and was a former top executive of sales for Google. He would not discuss any products that might be in the development stages. He did say however, that Motorola was investing in technology and a team that would be developing something very different from what is currently offered.

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