Verizon Wireless, Motorola Unveil Droid X; Google Ups Android Sales Estimates

23rd Jun 2010 19:13

By Roger Cheng Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Google Inc. (GOOG) upped its estimate for the number of Android phones sold each day as Verizon Wireless unveiled its own Android phone, the Droid X, a day before the next Apple Inc. (AAPL) iPhone hits stores. Andy Rubin, head of Google's mobile business, said during a press conference that 160,000 Android phones are activated each day, up from a prior estimate by Google of 100,000 per day made last month at a developer conference. The Droid X, meanwhile, will sell for $199.99 with a two-year contract when it launches on July 15. Like AT&T Inc.'s (T) plan to allow for early upgrades, Verizon Wireless will let any customer whose contract expires this year upgrade for at the standard subsidized rate. The device is another coup for Google, which has seen its platform skyrocket in the last few months with a number of high-profile phones. It's also another illustration of the tightening bonds between Verizon Wireless, Google and Motorola Inc. (MOT). "There's definitely a band forming here today," Rubin said. Google Chief Executive Eric Schmidt made a surprise guest appearance to kick off the event. "People are thinking mobile first," he said, touting the strength of the network, software and hardware working together. The device is the latest high-end smartphone from Verizon Wireless to bear the Droid name, which the carrier has attempted to push as its line of high-end phones running on Android. Verizon Wireless sees its Droid line of phones as its counter to the popularity of the iPhone. The Droid features a 4.3-inch display, which promises high-definition video output, a faster processor, the ability to run Flash software, and a version of Motorola's own customized software, called Motoblur. The device is significantly larger than its predecessor, the original Droid. It also has the ability to create a mobile Wi-Fi hotspot for five other devices; the service costs an additional $20 a month. "This is going to deliver an unparalleled experience," said Motorola co-Chief Executive Sanjay Jha. In a jab at the iPhone, Jha said, "we recognize people still use phones as phones," touting the device's three microphones for improved call clarity. For Motorola, the smartphone represents a continued validation of Jha's strategy of focusing his company's resources on high-end smartphones. The Droid X is the second flagship phone to run on Verizon Wireless's network since late last year. The company is expected to have another Droid device in the wings for later this year. The high-profile devices should go a long way towards driving the company's mobile devices unit back to profitability. Jha has called for a return to profitability by the fourth quarter, with the unit slated to be spun off--along with the home set-top box business--as a separate company in the first quarter of next year. Verizon Wireless, which is jointly owned by Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD), has been a key supporter of Motorola. -By Roger Cheng, Dow Jones Newswires; 212-416-2153; [email protected] (END) Dow Jones Newswires June 23, 2010 14:13 ET (18:13 GMT)