Google is getting serious about marketing its Moto X phone, which is supposed to hit the market in the summer or fall of 2013. It is about to spend a staggering $500 million marketing the top smartphone that is produced by its unit at Motorola Mobility. That much cash would easily be more than the marketing budgets of Apple and Samsung, the current market leaders in the smart phone business.
Some industry experts have long thought that Google’s interest in smart phones was driven by its desire to push other companies to produce better products. That is, if phones, tablets and computers are cheaper and faster, Google is going to make more money by putting ads in front of users.
But $500 million? That’s a lot of money to spend on just trying to nudge the industry into cheaper products. It may be that the Google CEO – Larry Page – has decided he wants to get onto the smart phone train and he thinks Motorola can help them do it.
Also, Google, which changed up their Analytics interface recently, knows that AT&T and Verizon want another smartphone manufacturer to break up the Apple and Samsung duopoly.
But, there is some uncertainty about how the Moto X will be positioned in the market. Industry experts think it will be in the league with the iPhone 5 and the Samsung Galaxy S4. It will cost about $200 with a carrier contract and $600 by itself. But others say the Moto X is going to be a midrange option, with it only costing $200 with no contract.
Whatever happens on pricing, it is clear that Google, which is making non-desktop SEO essential, wants to make good smart phones cheaper for the masses.
We think that the $500 million figure Google is touting could be a bit about marketing. It’s just a bit more than what Apple and Samsung spend. So, it might be a message to Samsung and Apple that the company is serious about using Motorola to come up with a highly competitive smartphone, so Android and Apple should get serious about improving their products too.