Dubbed the "X phone" the beast is supposed to push Google into the handset market.
According to the Wall Street Journal, the X phone is supposed to be a marquee handset with cutting-edge features to stand apart from existing phones.
Google wants it in the shops next year, but it is finding that the manufacturing side of the business is a little slow.
Hurdles associated with manufacturing and supply-chain management that have caused the company to rethink some initial plans for the X phone, such as using a bendable screen. If the phone is delayed too much then it will have a knock on effect on the X tablet, which was supposed to arrive afterwards.
The Journal said that Google was having trouble managing the complex relationships with smartphone makers that use its Android.
The X phone project is led by former Google product manager Lior Ron. Motorola wanted better colour saturation on the camera and the ability to take panoramic shots. But some of the features drained battery life or already have been incorporated into other devices.
Motorola ran into difficulties when it looked into using a bendable screen and materials such as ceramics that would allow the company to make the X Phone more stress resistant and better colours and shapes.
Developers insist that the problems are normal, but there are some who see the problems as an additional complication for the Google/Motorola deal,
Google claimed that the deal will push Android. But it also put them in opposition to their hardware partners.
Some fear that Samsung, for example, could develop a "forked" version of Android to take Google out of the picture.
Some in Google think that Motorola is an insurance policy if Samsung shifts strategy. If they develop lots of exciting things on Android and demonstrate it working then Samsung will have to go along for the ride.
Others fear that it will just stick Google in direct competition with its suppliers to such an extent they will be force to go their own way.