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.

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 Motorola's 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.

In an interview, he said Motorola expects to launch more than 20 Android-based phones by the end of 2010. While many will feature Motorola's social networking software, some will be optimized for multimedia, enterprise messaging and other functions.

Taking into account the cost of the device and T-Mobile's monthly plan, the Cliq will be "aggressively" priced, Jha 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.

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, while Google shares rose 1.5% to $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