3rd UPDATE: Motorola Unveils First Android-Powered Phone
September 10 2009 - 4:57PM
Dow Jones News
Motorola Inc. (MOT) on Thursday unveiled its first mobile phone
powered by Google Inc.'s (GOOG) Android operating system, a launch
that could prove crucial for the struggling handset maker.
Motorola said its Cliq, which it called the world's first phone
with "social networking skills," will be available in the U.S.,
U.K., Spain, France and Latin America in the fourth quarter. The
company didn't offer pricing details.
A key feature of Cliq is social-networking software dubbed
"Motoblur," which syncs a users' phone contacts, emails, posts,
feeds and photos from a wide range of messaging and social
networking services such as Facebook, Twitter, MySpace and
Gmail.
The phone, unveiled at the Mobilize 09 conference in San
Francisco, marks the first look at the touches Motorola put on top
of Google's software. Those are seen as the key to setting Motorola
products apart from the pack and reinvigorating its lineup.
Sanjay Jha, the company's co-chief executive, said Motorola will
launch a second Android-powered device in the next few weeks. He
appeared with Cole Brodman, chief technology officer of Deutsche
Telekom AG's (DT) T-Mobile USA, which will carry the Cliq
exclusively in the U.S.
Orange, Telefonica and America Movil (AMX) will also carry the
phone, which will be called Dext in markets outside the U.S.
Motorola needs a successor to its Razr, which shot into the
market eight years ago and forced rivals to churn out copycat
phones. The company's failure to follow up led to its troubles.
Jha said the Cliq wasn't make-or-break for the company, but
would help set Motorola's direction. "It's the first step in a long
journey," he said.
For Google, the Cliq is part of a wave of new Android-powered
devices expected to ship by the end of the year, giving it a chance
to make a splash in a market dominated by Apple Inc.'s (AAPL)
iPhone and Research in Motion Ltd.'s (RIMM) Blackberry.
In the second quarter, Motorola's share of the global handset
market fell to 5.4% from 9.5% a year ago, according to Strategy
Analytics. Samsung Electronics Co. Ltd. (SSNHY) and LG Electronics
Inc. (066570.SE) have overtaken Motorola.
Motorola has a lot riding on the success of its Android-powered
phones. Earlier this year, it scrapped several promising devices
and shelved development of Windows Mobile smart phones to focus
solely on the Google platform.
Despite Jha's attempts to downplay the launch, analysts have
said it is crucial the early products perform well and create
momentum for the next wave. The products are Jha's first major test
since he took the reins of the mobile devices division late last
year.
Maribel Lopez, head of Lopez Research, said the user interface,
which will be applied over the Android operating system and tie
together personal information from different social networking
sites, surpassed those by Palm Inc. (PALM) and Apple.
Still, if Motorola wants to succeed, it will need to get its
products to more carriers, Lopez said.
Other analysts said the phone was strong, but not significantly
different from the competition.
Ross Rubin, a product analyst for NPD Group, said the Cliq was
intended for youthful buyers looking for an affordable device. He
expects the second Motorola smart phone to come out at the higher
end and feature more interesting hardware touches.
More handset makers and carriers are expected to embrace Android
over the next few months. The open-source software - which is
freely provided - was announced in late 2007, but only a few phones
are on the market.
Google developed the software to stake its claim in the mobile
search advertising market, which the Mountain View, Calif.-based
company expects will become an important source of revenue.
Motorola shares rose 1.5% to $7.97 Thursday while Google shares
were up 1.5% at $470.94.
-By Scott Morrison, Dow Jones Newswires; 415-765-6118;
scott.morrison@dowjones.com
-By Roger Cheng, Dow Jones Newswires; 212-416-2153;
roger.cheng@dowjones.com