Motorola Inc. (MOT: 7.76 -0.37 -4.55%) yesterday introduced the latest addition to its smartphone portfolio, the BACKFLIP. This device has its keypad at the back, which can fold out rather than slide out. BACKFLIP will combine the social networking and personalization of MOTOBLUR software with the multitasking performance. Motorola will start shipment of this mobile phone in the current quarter.
After Cliq and Droid, BACKFLIP is the third 3G smartphone of Motorola. All the three phones are using Google Inc’s (GOOG: 602.02 +7.92 +1.33%) Android software as the operating system. Cliq was introduced in the U.S. by T-Mobile, a division of Deutsch Telekom AG (DT: 14.57 +0.13 +0.90%), whereas Verizon Wireless (VZ: 31.75 +0.02 +0.06%) was the carrier partner for Droid. Industry sources predicted that both Cliq and Droid received favorable market traction. This prompted Motorola to opt for more advanced smartphone like BACKFLIP. Industry rumors also indicated that AT&T (T: 27.10 -0.20 -0.73%) may become the carrier partner for BACKFLIP, although nothing has been confirmed.
Motorola is working closely with Adobe Inc. (ADBE: 36.69 -0.20 -0.54%) to bring Adobe Flash Player 10.1 to Motorola’s smartphones as part of the Open Screen Project. Adobe Flash Player on Motorola smartphones will deliver a unique Web browsing experience to users with its rich applications, games and video.
Motorola started showing the initial signs of revival with an unexpected profit in its third quarter 2009. We believe effective cost control measures, massive demand for wireless broadband services, and recently introduced high-end 3G smart-phones will support the stock price in the near-term. We reaffirm our Neutral recommendation.
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