According to a Wall Street Journal (WSJ) report, citing unidentified sources aware of the proceedings at Google, engineers at the Google's Motorola Mobility division are working painstakingly on a sophisticated handset, which is referred to as the `X Phone' within the company.

As per the report, the handset being designed by the engineers at Motorola Mobility - which Google acquired for $12.5 billion this May - will chiefly take on smartphone market bigwigs Apple and Samsung.

The WSJ sources have revealed that the marquee `X Phone' which the Motorola engineers are designing will boast some avant-garde features, so as to gain a notable edge over the handsets currently available on the market. The handset will reportedly be launched in the coming year.

With the `X Phone' to be a Google-Motorola joint venture, the WSJ report indicates that the handset will have excellent camera features, which the two companies are hoping will help lure the customers away from Apple's popular iPhone brand and embrace Android photo features.

The report further disclosed that the `X Phone' will, in all probability, run the latest version of Google's Android operating system. In addition, the report also mentioned that the handset will boast some attractive enhancements resulting from Motorola's recent takeover of Viewdle, the developer of imaging and gesture-recognition software.