Motorola – Pointless cosmetics

The Moto X completely misjudges the US consumer.

• Motorola formally launched the much leaked Moto X.
• Differentiation is the name of the game with a number of features that are very different from other devices.
• These include:
  • Unusual form factor boasting 2,000 points of customisation that can be requested by the consumer.
  • The device will be assembled in the USA creating American jobs.
  • Voice control at all times even when the phone is asleep.
  • Active display where core events like email, texts and time of day are displayed without the phone needing to be woken.
• The device is priced at $199 with a two year contract with all four US operators putting it in line with the iPhone 5 and Samsung Galaxy S4.
• The device is differentiated but it is not competitive as:
  • Moto X uses a 720p screen vs. 1080p on its Android rivals.
  • It is using an older processor (Snapdragon S4 Pro) compared to the Snapdragon 600 used by the S4 and HTC One.
  • It is based on Android 4.2.2 instead of Android 4.3. This is a strong indication that this device is late and Motorola did not have time to migrate its innovations to the next version of Android.
  • Distribution outside of the Americas will be very limited as Motorola has shut down much of that capability.
• The biggest problem as I see it is the fact that this device completely misjudges the American consumer.
• Its stand-out feature is the ability to customise it in 2,000 different ways but history has shown that the US consumers don’t really care what the phone looks like.
• This is as true today as it was when Motorola was the market leader with a range of hefty, unattractive devices.
• The vast majority of US consumers will spend hundreds of dollars on the newest, sleekest device and then wrap it in a fat, ugly case.
• Therefore it seems that there is little point in customising all of these facets and colours if no-one is going to see them.
• Hence, I suspect that this device would find most appeal in the more mobile fashion conscious markets of Europe, China or India but the device seems unlikely to be made available there any time soon.
• Hence, I suspect that this is not the silver bullet that Motorola needs to move back into contention.
• I remain fearful that the coming quarters will continue to be laced with red ink as devices gather dust and factory workers twiddle their thumbs.
• This is not going to make much difference to Google but it serves as further indication of the lack of concern that management has with shareholder’s wealth.
• I prefer Yahoo!