Google Tries Hardware

$12.5 billion and 15 months later…

I am still not clear on how to properly identify the first product out of Google’s new hardware division, Motorola. Does one call it the Motorola Moto X? The Moto X from Motorola? The Motorola X by Moto? Are you supposed to say the Moto, or just think it? Is Moto the product line, and X the first version?

Regardless, the Moto X now exists outside of Wall Street Journal reports (read: leaks) and Guy Kawasaki’s silly hints. It has some pretty neat features: dedicated on-board DSP that always listens for verbal Google Now commands and questions; active notifications which only illuminate parts of the AMOLED screen, saving battery life; customizable exterior at the time of order, to be delivered four days later at no extra charge; assembled in the United States (Texas).

Perhaps the greatest feature of the Moto X will be the $500 million advertising campaign that will directly benefit Madison Avenue? This industry shows time and again that device sales can be strongly influenced by the amount of its mass media advertisement.

But the Moto X also has some problems. It comes with last year’s specifications (dual core processor, 720p screen) while running Android 4.2, which was released in December 2012. (Google announced Android 4.3 last month on July 24, a week before the Moto X’s unveiling, and almost a full month prior to the device going on sale.) Its greatest differentiator, the Motomaker hardware customizer, is only available for one carrier partner worldwide: AT&T (Motorola claims Verizon will gain access to it at a later date). The camera is mediocre according to photo capture enthusiasts. Carriers still have to approve device firmware updates, which allows for delays or outright canceled upgrades. The touchless control system is useless if you have a device security enabled.

And it costs $199. On contract.

I look across the vast Android ecosystem of partners and their devices,and I wonder what kind of game Google is playing.

The Nexus 4 is available off contract for $299, and has essentially the same speifications. The HTC One and Galaxy S4 (and soon LG G2) have newer processors, higher resolutions screens, and cameras that take better pictures, while available at the same $199 on contract as the Moto X.

Not to mention Samsung spent almost $11 billion on worldwide sales promotions and advertisements in 2012, and most of that centered around the Galaxy S and Galaxy Note product lines. Apple spent $1 billion on advertising across its product lines.

So I wonder how does Motorola, or even Google, plan to make a dent in the mobile device ecosystem with the Moto X?

One would imagine having a more concrete plan after already being $12.5 billion in the hole.