Engineers at Motorola are hard at work on a sophisticated handset—known internally as the "X phone"—but the Google Inc. unit is running into some obstacles in its effort to provide more potent competition for Apple Inc., said people familiar with the matter.
Seven months after being acquired by Google for $12.5 billion, Motorola is designing its marquee handset with cutting-edge features to stand apart from existing phones when it is released next year, these people said.
The company says it will stop making devices for dozens of countries in order to focus on the biggest markets. Mobile-industry experts said that will have the effect of reducing Motorola's scale—and thus its leverage when negotiating over price with suppliers.
Motorola's Mr. Woodside said "scale is important but building great products is even more important."
Pieter Knook, a former executive at wireless carrier Vodafone PLC, said, "If you look at the handset makers other than Apple, it's a pretty grim story for anybody who's not Samsung" or Chinese companies building lower-priced smartphones.
Earn Money by Sharing Links on FACEBOOK EASILY No limits to earn! Seven months after being acquired by Google for $12.5 billion, Motorola is designing its marquee handset with cutting-edge features to stand apart from existing phones when it is released next year, these people said.
The company says it will stop making devices for dozens of countries in order to focus on the biggest markets. Mobile-industry experts said that will have the effect of reducing Motorola's scale—and thus its leverage when negotiating over price with suppliers.
Motorola's Mr. Woodside said "scale is important but building great products is even more important."
Pieter Knook, a former executive at wireless carrier Vodafone PLC, said, "If you look at the handset makers other than Apple, it's a pretty grim story for anybody who's not Samsung" or Chinese companies building lower-priced smartphones.
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