The X Phone is expected to take advanyage of an imaging and gesture-recognition software developed by Viewdle, which was recently acquired by Google.
The new handset is due out sometime next year, the business daily said, citing a person familiar with the plans.
Motorola is also expected to work on an "X" tablet after the phone.
Speaking of tablets, Acer is also reported to launch a $99 7-inch Android tablet tablet, according to Taiwan-based supply chain makers. The tablet will be reportedly equipped with a processor developed by MediaTek.