The so-called Google Phone, nicknamed that because it was Google branded and sold directly from Google, though manufactured by HTC, hasn't exactly been a great success. Despite this, however, Motorola in its earnings call on Thursday, has agreed to build another for Google.
The HTC Nexus One sold an estimated 20,000 units in its first week, which was disappointing. Google's direct sales plan may have had something to do with this. While the GSM device was shipped unlocked at a hefty price, consumers who wanted to buy it subsidized could sign a two year T-Mobile contract. The phone, shipped unlocked always, will work on AT&T's network, but will not work in 3G.
All of this could have contributed to the somewhat lackluster Nexus One Sales. It's also true that customers have been dissatisfied by the fact that Google, as with its other services, has no phone support. Customers who bought unlocked and unsubsidized Nexus Ones are not eligible for T-Mobile support.
Meanwhile, Motorola on Thursday announced its latest earnings. The company has bet the farm on Android smartphones, and it shipped 2 million units of the Cliq and Droid for a October-December 2009 profit of $142 million. In 2008 at the same time, it posted a $3.6 billion loss.
Reportedly, Motorola plans to release 20 smartphones this year alone. Sanjay Jha, Motorola's co-chief executive said: "The reception to our smartphone portfolio has been positive. Today, I have greater confidence in our ability to execute on our plans."
Most of those phones will include their social networking front end to Android, MotoBLUR. He also detailed their plans for a Google-branded phone, as with the Nexus One.
However, Motorola isn't the only Android phone maker in town. It faces stiff competition not just from Android phones, but from the iPhone, which will undoubtedly be refreshed this year, the Palm webOS, and Nokia, too.
The company also reiterated that it plans to spin-off its mobile division. It has been planning this for some time, however, and the recession has halted those plans in the past.
Written by Michael Santo
HULIQ.com
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