NEW YORK -(Dow Jones)- Motorola Inc. (MOT) plans to introduce new Droid smartphones for Verizon Wireless, according to Co-CEO Sanjay Jha.
Motorola benefited from Verizon Wireless's push at the end of last year for the original Droid phone. But with the launch of the Incredible from HTC Corp. ( 2498.TW), Motorola's flagship device has been pushed aside, bringing up the issue of how the company remains competitive with so many other players in the market.
Jha told analysts at an investor conference on Thursday that Motorola's size, brand and software provides it with the differentiation necessary to attract customers. He noted that the company will launch a new version of its Motoblur user interface later this year, and said that the company has made tremendous progress in its transformation to a smartphone maker.
While he would consider creating his own mobile operating system under certain conditions, he said that "nearly all of my focus is on Android today."
One of the problems that handset manufacturers have had to deal with are the constant revisions to Google Inc.'s (GOOG) Android software. Jha said the changes to the underlying framework of the software has made it difficult to upgrade quickly, but added that things are getting easier to update.
He said he would be aggressive introducing Android 2.2 to phones, since it will enable Flash on its phones, which he said was important for the customer's Internet experience.
"Some don't, as I understand," in a thinly veiled shot at Apple Inc.'s (AAPL) stance against Flash on its iPhone and iPad.
On the feature phone side, Jha said he was managing the business for a modest profit, and that he sees the business stabilizing with more volume next year as it starts to benefit from its original equipment manufacturing deal. The company has outsourced the production of low end phones in an effort to maintain its brand in emerging markets, with the hope that customers from those countries will eventually buy a Motorola smartphone.
He said there is tremendous opportunity to sell smartphones to Chinese customers. He noted that demand is lower in Latin America because the networks aren't as advanced, but said he eventually expects growth in that area as well.
Jha, who will take over both the mobile devices and home divisions when the company splits early next year, added he also sees overseas demand for its set- top boxes, and said there remained an opportunity to install more multi-room digital video recorders and high-definition boxes in the U.S.
Jha hinted at the prospect of a Motorola tablet, noting that having a 7 inch to 9 inch display as a companion to a larger television is important, and that the company was "engaged in thinking about the right solution there."
He was also evaluating using Android to run a bigger device such as a TV, but noted he wasn't entirely comfortable with the idea yet.
Motorola shares rose 1.8% to $6.88.
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