Google is willing to spend nearly $500 million on advertisement and marketing of its much anticipated Moto X, the first flagship handset by Motorola Mobility since it was acquired by the web giant.
As the launch date of the highly anticipated smartphone from Motorola nears, several rumors and speculations are making the rounds. In a latest report from Wall Street Journal, Google is willing to spend as much as $500 million for the marketing and advertisement of Moto X in the U.S. and select international markets, "people familiar with the matter," said.
Sources reveal that the Moto X will be available with all major U.S. carriers including AT&T, Verizon, Sprint, Nextel and T-Mobile. Google's Moto X will be priced alongside its competitors, Apple iPhone 5, Samsung S4 and HTC One. These devices in the U.S. will be sold for $199 with a tied contract and $599 for contract-free phone.
Moto X is much hyped for its customization feature, which allows any color of the buyer's choice and option to engrave a personal name or a message on the back cover, ABC news reported earlier this month. The Moto X will definitely include high-end specs like display, camera, processor, storage and lot more .
Dennis Woodside, Chief Executive Officer of Motorola Mobility, noted some features of the Moto X at The Wall Street Journal's D technology conference earlier this year. Woodside discussed features such as extended battery life and ability of the phone to adjust to the surroundings, for example, while driving, the device's sensors will detect and automatically offer voice commands or open camera by sensing in advance if a person is trying to take a picture.
Motorola Mobility did not gain dominance in the mobile market as a standalone company, but with Google backing it up and a plan to spend up to $500 million for the marketing of the Moto X, it is likely to gain a substantial position in the smartphone market. Motorola sold nearly 2.3 million smartphones in the first quarter of this year, which accounted for only one percent of the global market, IDC research firm said.
In comparison with Apple and Samsung, who jointly sold nearly 385 million smartphones worldwide in the last four quarters, Google is spending a lot more on advertisement and marketing. Samsung spent $401 million in advertising in the U.S. last year, while Apple spent $333 million, according to Kantar Media.
Motorola ran its first ad earlier this month, emphasizing that the Moto X is largely assembled in the U.S. unlike its competitors Apple and Samsung.
The Illinois-based company declined to comment on the marketing strategy at this stage.
