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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Motorola unveils Google phone to muted response Thu Sep 10, 2009 8:34pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Sinead Carew and Ritsuko Ando SAN FRANCISCO (Reuters) - Motorola unveiled on Thursday the first of many cellphones to be developed in partnership with Google, but analysts questioned if it could revive the once-dominant handset maker's fortunes. Wall Street sees the phones as Motorola's last big hope to regain the market share lost to rivals like Apple Inc, Nokia and Samsung. Analysts were unimpressed by the design but hoped a focus on integrating social networking sites from Facebook to Twitter might help prop up sales. Shares of Motorola rose around 1.5 percent at $7.97, barely more than the rise in the overall market and off their earlier high of $8.15 before the phone was shown. In contrast, when Palm Inc unveiled the Pre phone at the Consumer Electronics Show in Las Vegas in January, its stock rose 35 percent. Motorola's stock had risen over 10 percent in the past month in anticipation of the new phone. "This is just the first salvo in the whole discussion about where they are going to place, but it sounds like they've done a good job here," said Ed Snyder, an analyst with Charter Equity Research. "It's nothing really to write home about from a physical aspect, but they don't really need to knock it out of the park to do much better." The phone, which uses Google's Android software, has a slide-out mini-keyboard and a five megapixel camera. The devices will be called Cliq in the United States, where it goes on sale at Deutsche Telekom AG's T-Mobile USA in the fourth quarter, and branded Dext in the rest of the world. France Telecom's Orange plans to sell the phone in Britain and France; Telefonica in Spain; and America Movil in Latin America. The phone will hit stores ahead of Thanksgiving, the start of the crucial holiday season, with pricing not yet available. Another Android phone will be launched before the end of the year, Motorola said. "It's not really a threat to iPhone because it doesn't look distinctive enough," said Macquarie Research's Phil Cusick. "It's pulling back here because really what they launched was essentially in-line with what we'd been expecting." NETWORKING HARD Motorola's last big cellphone -- the Razr -- launched nearly five years ago. Its ultra-thin design spurred copycats. Since co-Chief Executive Sanjay Jha took the helm in August 2008, investors have hoped the doctor of engineering could turn around Motorola with his aim of scrapping existing phone roll-outs to divert resources into Google Android devices. "We're committed to the product, but we have to make it matter in the market place. That will govern our financials," Jha told Reuters after unveiling the device. [ID:nN10360919] Motorola is banking on the current craze for smartphones, one of the hottest segments of the tech market. Charter's Snyder expects sales of about 240 million smartphones, or about 20 percent of a 1.2 billion global phone market, in 2010. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! 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