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July 11, 2013

Google Contributing $500 Million to Moto X Marketing Campaign

Google is prepared to spend half a billion dollars marketing Motorola’s first Smartphone since the company was acquired by the search-engine giant.

Google’s Motorola department is expected to throw its support behind Motorola’s Moto X Smartphone to the tune of $500 million, say reports in the Wall Street Journal, and major cell phone companies like AT&T, Verizon Wireless, Sprint Nextel Corp. and T-Mobile are set to offer the phone to their customer base by this fall.

Google believes the device will attract buyers for a few reasons, including the lack of previously installed software – known as “bloatware” – loaded on the phone, and the ability to choose colors for the phone’s front and back, as well as engravings.

Perhaps also working in its favour, the Moto X will be assembled in the U.S. at Motorola’s Fort Worth, Texas facility where the company expects to employ more than 2,000 people, according to CNet.

Google isn’t the only company rooting for the Moto X to take off. Sources speaking with Wall Street Journal said representatives from microchip and sensor supply companies “hope Motorola or other hardware manufacturers can break the dominance of Samsung and Apple.”

“The industry is certainly rooting for Motorola as well as the other [manufacturers] to be successful” and break up the “duopoly” of Samsung and Apple, said Rajeev Chand, a managing director at boutique investment bank Rutberg & Co in an interview with the Journal.

Together, the two companies represent about 385-million of the 770-million Smartphones shipped world-wide over the past year. Motorola is expected to price its phone to compete with Apple’s iPhone and Samsung’s Galaxy S4 models – about $600 without a contract and $200 with.