Leaks have surfaced that Motorola is preparing a new DVX smartphone, which would be a lower-end model similar to the recent Moto X. The DVX could target prepaid and emerging markets with a lower price point. Motorola CEO Dennis Woodside has referred to Moto X as a longer-term branding strategy and product family rather than a single product. X products represent the new design trend that the handset maker has taken under Google's (NASDAQ:GOOGL) direction, and are dramatically better than the products that Motorola was releasing previously.
For Google investors, the key will be if the search giant can ever make the Motorola acquisition a financial success. After factoring in cash acquired and the subsequent sale of the home division, Google paid approximately $7 billion. However, Motorola has also generated $1.7 billion in operating losses under Google's flag since the deal closed last year. Even if Motorola's new X family of phones proves to be popular, the company will still need to recover from operating losses while Google continues to balance its relationships with the other Android OEMs that it relies on.
In today's episode of Tech Teardown, Erin Kennedy discusses Motorola's X phones with Evan Niu, CFA.
Neither Erin Kennedy nor Evan Niu, CFA, has a position in any stocks mentioned. The Motley Fool recommends Google and owns shares of Google and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.