“Google Engineers at Motorola [Mobility] are hard at work on a sophisticated handset, to be released next year, that parent Google Inc. hopes will provide more potent competition for devices like Apple Inc.’s iPhone, said people familiar with the matter,” Amir Efrati reports for The Wall Street Journal. “Seven months after being acquired by Google for $12.5 billion, Motorola is designing its marquee handset—known internally as the ‘X phone’ — to stand apart from existing phones, though the company is running into some obstacles, these people said.”

“The previously undisclosed development effort is a key facet of Google’s strategy for bolstering the miniscule market position of the cellphone pioneer, based partly on bolstering quality while reducing the quantity of Motorola products,” Efrati reports. “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.”

Efrati reports, “But while Google is known for swift execution on the Web, its new hardware unit has run into obstacles associated with manufacturing and supply-chain management that have caused the company to rethink some initial plans for the X phone, these people added. Meanwhile, Google must manage complex relationships with smartphone makers that use its Android mobile-device software—particularly with Samsung Electronics Co., a Motorola rival that has become the No. 1 smartphone maker with Google’s help… Google Chief Executive Larry Page has told the Motorola team to ‘think big’ and aspire to reach the scale of Samsung’s mobile business, and promised a significant marketing budget for the unit, said people familiar with the matter.”

Read more in the full article here.

MacDailyNews Take: Here, we’ll follow the thought all the way through to its logical conclusion: Google Engineers are hard at work on a sophisticated handset they hope to provide more potent competition for devices like Apple Inc.’s iPhone unlike the Android handsets littering the market today.

Good luck with that, Google. Watch those patents now, ya hear?

[Thanks to MacDailyNews Reader “Scott M.” for the heads up.]

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