Google’s Moto X Stakes Out New Position in Smartphone Market

Yes, I realize the Moto X is technically built by Motorola, but it’s the result of Google’s acquisition last year. Last week, the Moto X was unveiled with an interesting twist: it’s being positioned differently than top smartphones on the market. It doesn’t have the best tech specs; on the surface, there are few differentiating features the device has compared to the endless supply of Android smartphones on the market. What it has is personalization and it’s made in the U.S.A., both of which are new (to this degree) for this hot market.

noggins-edge-moto-xGoogle put a significant amount of energy and investment into the Moto X. The hope is that it will bring Motorola back to life. The story behind the Moto X and its future, involving the Google X lab, is pretty interesting, as the two companies know something different needs to be done to make Motorola relevant again. Screen size and CPU horsepower are no longer enough for differentiation. The Moto X is positioned as a higher-end smartphone with personalization that’s technically a pure Google phone.

From Wired on the personalization:

A website allows Moto X buyers to customize the phone, choosing from 18 colors and materials for the back of the device as well as different accents for the ring around the camera lens and the volume and on-off buttons. Soon after launch, Motorola will offer actual wood veneers. You can even choose headphones in matching or contrasting colors. Those choosing this “virtual SKU” also enter their software preferences, and in four days or less receive the phone, ready to use out of the box. (For a limited time after launch only AT&T customers can do this—later, Motorola will open it to its other carriers: Verizon, Sprint, T Mobile and US Cellular.) Just as with the Kindle, the device already knows who you are—so it’s not surprising that Motorola’s VP of supply side and operations is Mark Randall, who left a similar job at Amazon.

The odds of a consumer seeing the same Moto X in the wild is one in 252. This is unique differentiation for a market that typically sees only white, black and silver. And being manufactured in the U.S.A. will resonate well with certain consumers.

From a software perspective, the Moto X doesn’t even come with the latest version of Android, 4.3. It does come with a pure Google experience, meaning it will receive updates as soon as they’re available. A big differentiating factor is “touchless control,” which is Google Now that works while the phone is idling. With the phone on your desk, a user can simply say “OK, Google Now” and run a variety of tasks, similar to Apple’s Siri, However, this feature is available on other Motorola Droid phones, so it’s unique to the company, not the device. It’s always listening, which raises privacy concerns because we are talking about Google, which loves data for targeted advertising. When it’s listening, but not active, what happens with what the device hears? That answer has not been thoroughly addressed.

Rumor has it that Motorola will be investing $500 million into a marketing campaign, although it’s been denied. That would be more than Apple and Samsung spent on iPhone and the Galaxy S4, respectively. We can assume Motorola will spend hundreds of millions of dollars marketing the Moto X, similar to what they did with the Droid in 2009, which propelled the company to temporarily become the defacto Android device leader.

The Moto X does have a lot of great features including a curved design. The customization is truly unique in this market and positions them differently against the competition, which typically compete on tech specs. How the Moto X gets marketed will be interesting, because I don’t know if consumers have been demanding a customized smartphone. There’s a chance the Moto X will succeed, but I’m doubtful it will outpace Apple or Samsung. The question will be this: is mass customization something that smartphone users are clamoring for? It’s a new position, which is important, but if it’s not desired, it just becomes one of the other 3,997 Android smartphones on the market.

Danny Ori

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