Could the Moto X Push Google Inc (GOOG) Stock Even Higher?

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What this means for Google
An amazing new phone, set at the right price, could make big waves in the smartphone world — or it could fall flat. Though Android is the mobile platform king, users don’t associate Motorola with the must-have devices like they do with Samsung and Apple Inc. (NASDAQ:AAPL).

That’s bad news for Motorola, and its something Google Inc (NASDAQ:GOOG) stock investors need to be aware of. Motorola will focus on just a few handsets instead of flooding the market with a plethora of phones, which is the right strategy for the company, considering that the smartphone market already has enough Android choices as it is.

But a public failure for Motorola could negatively impact Google Inc (NASDAQ:GOOG)’s stock. Back in March The Wall Street Journal got its hands on a leaked internal Motorola letter talking about job cuts and the need to cut costs. Part of the letter said that Motorola’s “costs are too high, we’re operating in markets where we’re not competitive and we’re losing money.” That information — paired with a more than 20% reduction in staff ­– didn’t make Google investors confident the company made the right choice in purchasing Motorola.

Google Inc (NASDAQ:GOOG) paid $12.5 billion for Motorola in 2011 and the company has continued to lose market share in the smartphone and tablet space ever since. The new Moto X may be part of a new strategy to turn that around, but it’s a big bet. In the ultra-competitive smartphone space, even Google is going to have to fight hard against its competitors.

The article Could the Moto X Push Google Stock Even Higher? originally appeared on Fool.com.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple Inc. (NASDAQ:AAPL) and Google. The Motley Fool owns shares of Apple and Google Inc (NASDAQ:GOOG).

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