- Handset could be launched in May, along with X tablet to take on new iPhone and iPad
- Will be made by Motorola following its acquisition by the search giant
Rumoured features include a bendable screen, ceramic case, and even gesture recognition.
It is expected to be the first 'real' Google Phone and tablet, as the firm has previously worked with other manufacturers, most recently LG and Samsung, for its Nexus range of handset and tablets.
Google is believed to be developing a 'superphone' through its Motorola offshoot that could take on the iPhone. Online rumours claim the 'Project X' handset could have a bendable screen, ceramic case and wireless charging
The firm hinted at its plans during its earnings call, when Google executives emphasized that when the company bought Motorola, Motorola already had a 12 to 18 month 'product pipeline' in the works, which Google is still 'working through' - meaning the first true Google products are likely to arrive in the spring.
Rumors have already circulated that Google will reveal a Motorola-built 'X Phone' and 'X Tablet' at its next developer’s conference, which is scheduled for May 15-17, 2013.
Although the firm has released no details of the new products, rumored features range from a bendable screen and a ceramic case to advanced gesture recognition technology.
In the call, Google CEO Larry Page said that 'In today’s multi screen world, the opportunities are endless… battery life is a huge issue… when you drop your phone it shouldn’t go splat.
'There’s a real potential to invent new and better experiences.”
Page also mentioned phone recharging as a pain point for people, leading some to believe the new products could include wireless charging capabilities.
Earlier rumours have also pointed to the handset having an extra-hard case that incorporates ceramic materials.
The LG Nexus 4 smartphone, Google's last 'branded' smartphone. It is believed future models, codename Project X, will be made in house by its Motorola arm
The comments came as the search firm announced better than expected results.
Revenue from Google Inc's core Internet business outpaced many analysts' expectations during the crucial holiday quarter and advertising rates fell less than in previous periods, pushing its shares up more than 4 per cent.
The world's largest Internet search company introduced new product listings during the fourth quarter - typically its strongest - and also benefited from business growth in international markets, analysts said.
Excluding traffic-acquisition costs, the business generated net revenue of $9.83 billion, up from $8.13 billion a year earlier, Google reported on Tuesday. That surpassed a $9.6 billion average forecast from six analysts polled by Reuters.
'Business looked really strong, especially from a profitability perspective.
'They really grew their margins in the core business,' said Sameet Sinha, an analyst with B. Riley Caris.
'Most of that strength seems to be coming from international markets which grew revenues quite substantially: up 23 per cent year over year, versus the 15 per cent growth in the third quarter.'
Shares of Google were up roughly 4.5 per cent at $734.46 in after-hours trading on Tuesday.