Schmidt, speaking today during the AllThingsD mobile conference in New York, declined to specify what devices Motorola is building but said people should think of the products as "phones plus."
"What I'd advise to do with Motorola is wait and see with the next generation of technology," Schmidt said. "It's very, very impressive."
Google bought Motorola in 2011 for $12.5 billion, but the combined company has yet to release any blockbuster products. Motorola has struggled to compete with Apple and Samsung, which dominates the Android market. The combined company is rumored to be building an X Phone with cutting-edge features. Some speculation pegs the phone's announcement to the Google I/O conference next month.