When Google acquired Motorola it was pretty evident that Google wanted the company for two reasons: patents and hardware. Motorola was a major player in the mobile world before Google even existed and through the years it has racked up many patents in its portfolio. The company also is an expert in building mobile phones, so between the patents and the hardware expertise, Motorola was a very attractive company for Google to acquire. Some patents are priceless; just ask Apple and Samsung.

A new report from an Australian site, Smarthouse, has posted some rumors about a new Motorola/Google smartphone currently going by the name X Phone. According to their sources, Hugh Bradlow, chief technology officer of Telstra, Australia's leading mobile carrier, has revealed some juicy information about the X Phone. According to the report the CTO told senior mobile staff that the new smartphone is a "real breakthrough, a game changer that will put pressure on Samsung and Apple."

Reliable sources also told Smarthouse that the device will feature software never seen before in a smartphone. They also go on to say "Google has been working on this device for a long time. It has software features and capabilities that are not available on a Samsung Galaxy smartphone or Apple iPhone. The software is really powerful and it pulls together Google services like no other manufacturer has done in the past."

Google is expected to show off the X Phone at the Google Developer Conference in May and begin selling the smartphone in July. Rumors say that all major carriers will sell the device and Google plans on selling an unlocked version on its Play Store at a very low price, similarly to how it is currently selling the Nexus 4 for $299 and $349. As with all rumors, take this one with a big grain of salt.