Google’s Motorola smartphone plans to steal Apple customers

GOOGLE has pledged to undercut Apple’s iPhone with a new device made by Motorola, the handset manufacturer it acquired last year for $12.5bn (£8.3bn).

The company plans to launch the Moto X later this year, said Dennis Woodside, who was brought in from a position at Google to run the Motorola unit last year. It is the first significant collaboration between Google and Motorola since their merger.

Woodside said the device would include a number of innovative features meaning it would anticipate what its user is about to do, such as using its built in accelerometer to know when a picture is about to be taken. This would also mean the handset could turn off some features when not being used, substantially improving battery life.

Perhaps more significantly, Woodside said the device would be much cheaper than current high-end handsets like the iPhone 5. “Those products earn 50 per cent margins. We don’t necessarily have those constraints,” he said.

The device will be the first solid indication of Google’s plans for Motorola since the acquisition.