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Chris Lau, Kapitall: When
Google’s (GOOG) Motorola division released the Moto X, it was met with an underwhelming response. The specifications of the phone were mid-range, but the price of the phone was comparable to that of high-end phones. Even though Google shareholders are pleased (shares are at an all-time high), there are other investing ideas to consider in light of the Moto X release.
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Moto XMotorola pushed the envelope of innovation by providing a totally hands free experience on the Moto X. The device is powered by a Qualcomm (QCOM) Snapdragon S4 Pro, a quad-core Adreno graphics processor, and has a 4.7-inch screen. The screen resolution is 720p, while other manufacturers offer 1080. The battery capacity is lower than the competition at 2,200mAh, but Motorola demonstrated that the device will run for up to 24 hours.Investing Ideas: CarriersMoto X will be available for $199 on a two-year contract with AT&T (T), Sprint (S), T-Mobile, Verizon (VZ), and US Cellular. A quick look at these carriers reveals that AT&T and Verizon could be good investing ideas. These companies pay a dividend that yields 5% and 4.1%, respectively:The 32GB Moto X model is exclusive to AT&T, but will set consumers back by $249. AT&T customers may also customize the phone color.Click on the images below to see prices over time. Price data sourced from Zacks Investment Research.Sensor Supplier
One beneficiary from the Moto X release is
OmniVision (OVTI). The company will be
supplying the 10.5-megapixel sensor, the OV10820, for the phone.
Tools provided by Kapitall. Log in to access free research tools, share practice portfolios, and more. The quality of the sensor could face stiff competition against the likes of Nokia (NOK). Nokia recently released the Lumia 1020, which outputs 41 megapixel images.Conclusion
Even though the Google-powered voice activation of Moto X is impressive, initial demand for the mid-range device could disappoint. Google is known for releasing the Nexus line-up, which are stock Android devices. The Nexus 4 is just $299, while rumors of a Nexus 5 could hurt Moto X sales. This of course will be negative for the suppliers and the carriers. Despite the risks, a Nexus 5 is unlikely to be announced until late fall. This will give Moto X a chance to wow consumers.