When Google acquired Motorola last year, the prevailing thought was that the two would eventually come together to build exemplary Android devices that could better compete with the iPhone. Both companies denied that was the plan. Looks like everyone was right. A new report by the Wall Street Journal says Moto and Google are indeed working on a device codenamed "X Phone." 

Motorola CEO, Dennis Woodside, said it is planning on "investing in a team and a technology that will do something quite different from the current approaches.” Some of these technologies, according to the report, will include ceramics, next-gen camera tech, and bendable displays. 

After the Motorola deal, Google said its relationship with other Android device manufacturers would not change. Android head, Andy Rubin, even went on the record saying that he has no idea what the Motorola engineers were working on. That said, the report cited those same relationships as one of the problems holding up the X Phone project. 

This was only a matter of time, really. 2012 was the year Google stepped out as a hardware company, introducing a line of Nexus products it designed and had built by Samsung and LG. Don't be surprised if the entire Nexus line is eventually built by Motorola. 

[WSJ via TNW]