Motorola Mobility’s engineers are working intensively on a sophisticated device, known internally as the “X Phone”, but the subsidiary of Google Inc. has encountered some obstacles in trying to produce a more potent competitor to Apple Inc., people familiar said.
Seven months after being acquired by Internet giant U.S. $ 12,500 million, Motorola is designing a flagship phone with cutting-edge features that differs from existing devices when it launches next year, these sources added.
But while Google is known to be very efficient in the execution of projects on the web, its new hardware division has suffered setbacks in the production and management of the supply chain. This has led her to rethink some initial plans for the X phone, and whether to include a folding screen, the sources added.
The initiative, whose existence was unknown until now, is a key part of Google’s strategy to increase market share tiny pioneer cellular basis of improved quality and reduced the number of products under the brand Motorola.
Google must deal with complex relationships with manufacturers of smartphones using its Android mobile operating system, particularly Samsung Electronics Co.,Motorola rival that has become the largest smartphone manufacturer in the world with the help of Google.
Dennis Woodside, a former Google sales executive and current CEO of Motorola, declined to talk about developing products. But he said in an interview that the company is “investing in equipment and technology that will do something very differently.”
Woodside said that while Motorola “is in trouble”, has “now support a shareholder in Google, which has the resources to do great things.” He added that only 1,000 million 7,000 million people worldwide use smartphones, what qualifies as an “amazing opportunity”.
For X phone, an initiative led by Lior Ron, a former Google product manager who worked on the Google Maps team, Motorola wanted features and photo software first, as the ability to take panoramic images, said two people familiar . But they realized that these functions absorb much battery or have already been incorporated into new devices like the iPhone 5, added these people.
The sources said that obstacles are a “normal” part of the research and development processes. Despite the challenges, the device is expected to be released in 2013.
Motorola, which dominated within 3% of Android phone shipments in the third quarter, according to research firm IDC, advances to improve its deteriorating financial position.
Google bought Motorola to, in part, to acquire patents that could be used against their rivals. Since then, the company has highlighted the benefits of making their own devices, although the market share of Motorola has weakened.
The agreement complicates the mission of expanding Google Android. Typically software makers install an operating system version that incorporates the services that generate revenue for Google, as Google Search, Google Maps and the Chrome browser.
Samsung, with its popular line of Galaxy devices, is the largest partner of its kind and has rapidly gained market share. The South Korean company made 40.3% of all shipments of phones with the Android system in the third quarter, according to IDC.Google was co-developed with Samsung devices and has provided early access to new versions of its mobile software.
Some Google executives fear that the relationship could deteriorate if Samsung decides to use a version “adapted” to Android, according to four people familiar with the situation. This means that Samsung would create devices with a version of Android that would not come with pre-installed Google applications.
Motorola is seen as a kind of insurance policy in case you change your strategy Samsung, the sources added, although there is little evidence that it will do something similar. A Samsung spokesman declined to comment on the matter.