Google (NASDAQ:GOOG) is stepping up the attack on Apple (NASDAQ:AAPL) after a report came out that the company is working on “top secret” phone, dubbed the “X Phone”.
Google will use Motorola to develop the phone; after Google bought the phone company earlier this year for $12.5 billion. While the Android operating system has been a real challenger to Apple’s iPhone, only 3% of the Android phones sold in the third quarter were from Motorola. Google now is looking to take a more central hardware role to rival phones from Samsung and Apple. Unfortunately, Google’s innovative ideas may be hard to produce in a cost effective manner. Additionally, the report detailed Google’s supply chain management problems which could delay production of the phone.
The report from WSJ also touches upon Motorola’s plans for next year and in the coming years. Motorola will continue to make phones for carriers just as it is doing now. However, the company will continue to focus on the “X Phone” and there are even talks of the company developing an “X Tablet”. As of right now, the company estimates the “X Phone” to be released next year.
If you are Apple, the bad news continues to pour in as the stock continues its downward push. Just earlier this week, US patent authorities voided Apple’s prized “pinch-to-zoom” patent that yielded the tech firm a nice sized settlement from Samsung back in August. Apple may be on a downturn currently but I wouldn’t go as far to say that this is the end of the road for the tech giant. Certainly the company is facing increasing pressure from rivals but there are several rumors swirling the web about Apple’s product releases for 2013. However, there have no official statements from Apple detailing next year’s product releases, which has some pundits calling the company a “sell”.
Ultimately, I think Google is in a great position to steal more market share away from Apple. The firm’s purchase of Motorola was initially met with some resistance from shareholders, but now appears to have been a good move (should the “X Phone” be a success). However, Google is entering an increasingly overcrowded market that continues to see the top tech players competing. In addition to the iPhone and the Galaxy S3, Microsoft (NASDAQ:MSFT) is said to be working on a next-generation Windows phone and Research in Motion (NASDAQ:RIMM) is expected to release the Blackberry 10 next year.
The bottom line here is that Google wants to finally use Motorola to develop a Google phone. While the Android system has been a successful challenger to Apple, Google is not selling many phones. Now the company is relying on innovation to develop its next phone, in the hopes that it will put the “X Phone” ahead of its competitors. Additionally, Google is planning to use Motorola to put pressure on the iPad, which is widely considered the best tablet on the market.
Google has their work cut out for them but if there is any tech firm out there that can pose a serious risk to Apple, it’s Google.
Disclosure: None
