Google, Motorola plotting a so-called ‘X Phone’ to take on the iPhone and Galaxy S III

Motorola engineers are said to be working on a “sophisticated” smartphone that will “provide more potent competition” to the iPhone, according to a report from The Wall Street Journal. Google (GOOG) hopes the handset, which is known internally as “X Phone,” will stand apart from existing devices, although the company is said to be running into some obstacles. The device will reportedly be equipped with a “top-notch” camera and photo software, which previous Google-branded  handsets have lacked. Motorola is also said to be interested in using a bendable display and materials that would make the X Phone more durable. Some of the phone’s features were said to be draining the device’s battery life, however, and the company is also said to be having difficulties with manufacturing and supply-chain management. The X Phone will reportedly be released next year, at which point Motorola engineers will begin work on an “X tablet.”