Motorola Readies Its Own Android Social Smartphone

(page 2 of 2)

until the second quarter of next year, say people who are familiar with it. And it may not be available in Europe until the third quarter of 2009. Many analysts have been expecting Motorola to roll out an Android phone in December or January.

Any delay gives competing Android phones a chance to gain traction. London-based INQ will unveil its social-networking phone, INQ1, in Britain and Australia in about a month (BusinessWeek, 10/09/08). The slider phone, which integrates Facebook features into its address book and camera, is expected to enter the U.S. market next year. And Nokia (NOK), the world's largest cell-phone maker, has already begun adding connectivity to its media-sharing site Ovi in some of its higher-end phones. "The sooner [Motorola] comes out with a social phone the better," says John Jackson, an analyst with the Yankee Group. "The more you wait, the more distance gets put between you and the rest of the world."

In the handset business, a best-selling product can reverse a company's fortunes quickly, as Motorola has seen first with its popular StarTAC, and then with the Razr line of devices. "Motorola still has global carrier and distribution relationships" to rival those of most competing players, says Jackson. Motorola also has a relationship with industry innovator Apple, and may be able to offer iTunes downloads for upcoming phones, says Moe Tanabian, principal at researcher IBB Consulting. Music downloads may appeal to the same category of consumers that is expected to buy social phones.

Good People

The Android project is getting a lot of attention and support directly from Motorola's new co-chief executive officer, Sanjay Jha. The Android phone—likely one of a series of Android handsets Motorola is cooking up—is the brainchild of people who joined Motorola via its 2006 acquisition of Good Technology. Good specialized in enterprise wireless messaging, data access, and security software used in such products as Motorola's Q line of smartphones. The project is headed by Rick Osterloh, vice-president and general manager for Android products and formerly Good's vice-president of marketing and product management.

Motorola is looking to add staff to its Android project in California, where the Good team is based. Applicants are invited to work on a "social smart phone." One posting for a software engineer on job board Monster.com reads: "We are a new start-up division within Motorola with strong executive level sponsorship, a 50M+ budget for our Android platform. Our new CEO, Sanjay Jha, has been in the forefront of the formation of the Android Open Handset Alliance!"

Kharif is a senior writer for BusinessWeek.com in Portland, Ore.