According to a report, Google newly-acquired Motorola mobility division and Google itself are working on a next-gen smartphone which is internally codenamed as ‘X Phone’ and is said to be developed to compete its biggest rival Apple’s iPhone.

But the details of the phone are incompetent when it comes to what exactly the phone is and what makes it next-gen smartphone.

According to the wall street journal report, the earlier undisclosed phone was set to be launched on ‘new year’ and already number of iterations has been made to the phone.

A bendable touch-screen has seemingly been considered and then canclelled for the X Phone as now it is said to have ceremic moulds which will permit unusual shape to the phone and panoramic camera for better color saturation.

Motorola mobility CEO Dennis Woodside, told Wall street journal that his team is currently investing in a technology that will be different from the present approaches and will do something different from the current technologies. Other sources linked the next-gen phone with Google’s latest acquitance Viewidle “a mobile focused computer division” enterprise.

The speculation is that ‘X Phone’ will include a feature of reading your lips voice instructions or will enable you to make hand-waving gestures in front of the phone’s screen. As per the Minority report, whatever the secret sauce is, we will hopefully see those features in Xtablet as well in the coming two or three years.

Google acquired Motorola mobility in May this year for a whooping $2.5 billion which is considered as the company’s most expensive purchase till date and search engine giant has laid off roughly 20% of the staff. Google announced last week that it is selling Motorola’s set top business known as ‘Motorola Home’ for $2.35 billion to a broadband technology firm Arris.

What features would you like to see in the X Phone? Let us know in the comments.