Hello Geeksters. As you may know, Google has sold Motorola to Lenovo, but they kept the Project Ara, for the modular phone.
Google intends to get a modular phone ready for just $50, in early 2015. The default phone will only have support for wifi and will be available in three sizes: small, medium and large. If you want to have the features of a normal phone, you will be needing to buy different modules for conectivity, camera, touchscreen and others. The modules will be attached via magnets, to be easy to replace modules, without having to restart the phone.
Google plans to create only the skeleton of the modular phone, and hopes other manufacturers will get involved and create separate modules. Recently, the first MDK (Module Developer Kit) has been made available, in order to offer guidance to the module developers.
Also, the first images of the modular phone have been made available at the Project Ara Developer Conference. The prototype from the below photo has a processor module packed with a TI OMAP 4460 processor and a microSD card.
Sources: Liliputing and The Verge