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Earnings

Motorola Pins Hopes On Android, But Analysts Question If It Can Distinguish Itself From Rivals

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imageAndroid, Android, Android. To say that beleaguered cellphone maker Motorola (NYSE: MOT) is pinning its hopes on the operating system would be an understatement. Today, after co-CEO and head of its mobile unit Sanjay Jha confirmed during its Q1 earnings call that Motorola was on course to launch Android-based smartphones in time for the fourth quarter holiday season, analysts grilled him in the question and answer session, wanting to know just how much Motorola can differentiate itself from its rivals while using Android, and if operators were biting. Here’s what Jha had to say (Transcript at SeekingAlpha):

Motorola’s focus with Android? Jha said in the call that Moto could differentiate by concentrating on offering enhanced integration of messaging and social networking applications, which they will offer on a range of devices including those in the mid and high-end of the market.

Multiple carriers, multiple regions: Jha said Motorola was “in detailed discussions with the multiple carriers around the world” to carry the Android phones they plan to release in Q4. Jha: “It won’t be one carrier, one region; it will be multiple carriers in multiple regions.”

Can Motorola differentiate?: Analysts wanted to know how Motorola would be able to distinguish itself from other Android offerings, what could they offer that was unique to them. Jha said that Motorola would be able to differentiate from its rivals through “the breadth” of its portfolio and by offering both lower mid and high tier portfolios. It is also differentiating itself through the applications it will offer, its brand, its distribution, its carrier relationships, and its design. Added Jha, “We are probably investing as much as anybody on the Android platform and I think we certainly can differentiate in the market place.” Specifically, Jha said Motorola viewed messaging and web browsing as being very important. He said, “One of the things that I particularly like about the Android platform is the very good mobile internet experience and the adjacent applications that Android brings to the table. We also think multimedia is important, mobility is important.”

But aren’t smartphones as a market saturated? Jha said he saw the smart phone market continuing to grow and …the definition of the smart phone evolving as well. If anything, he noted, “there is probably an underestimate in the industry of what volume could be there.” He added, “So I think that that market that we are going after, as you rightly say a lot of other people are also seeing as being very interesting market, is growing. So that gives me some comfort.”

Separation Anxiety: Jha also confirmed that a spin off was still under consideration, and that there were still three factors guiding the company decision as to when the spin off will occur: “the state of the telecom industry, the state of the handset market that is to say, our access to credit and the developments in the mobile devices business”. All of these said Jha will govern the timing of our separation. Jha added, “As we have said all along we continue to be committed to the separation. I won’t guide you to the timing of this separation except to say that those are the three factors that we will be considering as we evaluate the timing of that separation.”

Apr 30, 2009 5:36 PM ET

Posted In: Gadgets, Money, Earnings, Social Media, Technologies / Formats, Operating Systems, Companies, Motorola

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