Earlier this year Google completed the takeover of Motorola in a $12.5 billion deal, and since then we have been wondering what the search engine giants plans were for the iconic mobile phone manufacturer. There are now reports that the two companies are working on a powerful smartphone and tablet device to rival to what Apple and Samsung has to offer to consumers.

The Wall Street Journal is claiming that both Google and Motorola are looking to create what is being called internally as an “X” phone, which is said to be very powerful to take on the likes of the next iPhone and Samsung Galaxy S4 next year.

There was some thought when Google acquired Motorola that its early work would focus on the software department of Motorola products, and it will be interesting to see what these two heavy weights can provide when combining their resources and expertise.

It is not currently known when the handset will be released to the masses though, and Motorola are also said to be working on a tablet as well. The news comes after claims that Motorola had recently acquired the services of a former marketing executive of Samsung.

There is a good chance that the mystery smartphone will have Nexus branding, and the internal “X” codename may relate to the Nexus brands logo. The company has been producing some worthy handsets recently and with Google’s backing and access to the Nexus brand we may see something really special.

Google will be keen not to repeat the mistakes it has made with the launch of the Nexus 4 where demand has outstripped supply, with many consumers complaining of the unorganised way the ordering system works via Google Play.

LG and Google have provided a great handset for a relatively low asking price and should have expected there to be huge demand for the product, but with Google calling the shots via a Motorola branded Nexus device things would surely be much better.

Currently there is no information regarding the likely specifications but sources are claiming that extra work is being focused on such things as the quality of the camera, photo software, and good battery life.

Competition is going to be big next year though with as always the next iPhone and flagship products from Samsung, but many Android fans love the vanilla experience that a Nexus device can bring with the Nexus 4 proving this that is coupled with some great specifications.

Do you think Google and Motorola will come up with something special?