ChannelNews has been told that Telstra already has a sample of the new device, which is tipped to put pressure on sales of the Samsung S4, the HTC One and the Apple iPhone.
The global launch of the new smartphone, which is tipped to be revealed in the third quarter of 2014, is key for Google.
Observers claim that Google has to challenge the status quo and come up with bigger and bolder ideas and the Moto X must redefine what the smartphone is today.
According to former Motorola Australia executives, Telstra Chief Technology Officer, Dr Hugh Bradlow described the new device as a "game changer" after being shown early prototypes of the device at the Consumer Electronics show in Las Vegas in January.
For Google, which recently retrenched several executives at Motorola Australia, the device is critical in establishing their place in the smartphone market.
According to BusinessWeek in the USA, Google's Motorola Mobility division is still in trouble after posting a decline in market share particularly in the US market, where Motorola has dominated in the past.
Former Motorola Australia Marketing Director Barry Smyth is now heading for the global launch of the new device, which is set to be a key product running into the fourth quarter of 2014.
According to industry sources, the X Phone is reportedly "self-aware" or smarter than other mobile devices. Software developed by Google allows the device to detect if it is inside a pocket and display-locked, or the user is touching it.
Moto X will be able to detect your next movement. Over time, Motorola will be able to leverage this data to create a better experience - especially as developers are empowered to use it in their own app development efforts.
The way in which data is streamed to the screen has also been changed when compared to other smartphones.
In 2011, Google paid $12.5 billion to acquire Motorola Mobility. Now the search company is planning something big in an effort to showcase what Google can really do.
Motorola currently has less than 5 percent of the smartphone market.
BusinessWeek said that for Moto X, it would be a mistake to focus on small, incremental improvements that have caused Nokia and BlackBerry to give up market share to Samsung.
Motorola, given its unique history and new owner (Google), has a shot at rebranding itself as the innovation leader and the company you can count on to leverage Google's inventions. Motorola has to come up with its own inventions, too, and it has to do Samsung one better - it is, after all, a challenger company.