Google Inc. announced that it is going to launch its flagship Moto X smartphone in the U.K., France and Germany. This is a strategic move of Google, which is trying to get a greater share of the handset market.
This month the price of the cheapest version of the Moto X device was cut by $100 to $399 by the company. One of the main reasons for this Googles decision was the fact that relatively weak sales were posted after the launch of the device in the U.S. in August 2013. Motorola also recorded a drop in its sales over the third quarter of last year.
However, Google Inc. still seems pretty confident that it can make a difference from Samsung and Apple, which are considered the leading players on the European market. Last November, Moto G was released all over the world, representing a cheaper smartphone focused on the customers in cost-conscious and developing countries. The phone is expected to be released on February the 1st in the U.K., at a price of 380 pounds without a contract.
After the acquisition of Motorola Mobility in 2012 for $12.5 billion, The Moto X device was the first product released by Google Inc. Most analysts have been observing its fate pretty closely, because the device was considered as an indicator of the Internet and software companys condition when put against the rivalry of smartphone makers such as Samsung, which run Googles Android operating system.
Forrester Researchs Thomas Husson said: “The Moto G, announced mid-November, was a device offering good value for money to target consumers in emerging markets and to a lesser extent some pre-pay customers in the U.K. And some other European countries. Given limited uptake [of the Moto X] in the U.S., launching an European version of this device six months later will not be sufficient to re-establish its brand in the U.K. or in Europe.”
According to CNN Money, the current share price of Google Inc. is 0.64% down, and its one-year return rate is 0.20% up. The 40 analysts offering 12-month price forecasts for Google Inc. have a median target of 1,125.00, with a high estimate of 1,313.00 and a low estimate of 850.00. The median estimate represents a +0.18% increase from the last price of 1,122.98.
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