Google's Moto X could help the online search king to establish its presence in the smartphone market. However, analysts said the global leader in search that made money through its profitable ad network would still have a tough time in the hardware market with just the Moto X.
More than a year ago, Google purchased Motorola for US$12.5 billion. The first Google-influenced smartphone from the company would be the Moto X. The smartphone would be released in the last week of August or the first week of September. It aimed to vie against Apple's iPhone and Samsung's Galaxy S4 for just US$199 through a contract with a telecommunications company that would last for two years.
Technologies like driverless cars, Google Glass and smartphone's Touchless Control are all excellent. Nonetheless, Google made money not by selling products but by selling ads. In the second quarter results of Google, Motorola Mobility comprised only 7% of the corporation's total revenue. Motorola Mobile generated a non-GAAP operating loss worth US$49 million for Google. Non-GAAP is described as an alternative revenue measure for a business' performance. Conversely, Google's enterprise not including Motorola Mobility earned US$4.21 billion in non-GAAP operating revenue or 32% of Google's total income.
Moreover, Apple was expected to give Google a tough fight in the premium smartphone market. In the second quarter, Apple was able to sell 31.2 million iPhones which amounted to US$18.5 billion in revenue.
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