This Is the Moto X Phone from Google's Motorola

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Aug. 1 (Bloomberg) -- Googles Motorola Mobility unit today announced a flagship Moto X smartphone with customizable colors, in an effort to revive the business after falling behind Apple and Samsung. Softbank Vapital's Nikhil Kalghatgi, Bloomberg Businessweek 's Sam Grobart and Bloomberg Contributing Editor Paul Kedrosky speaks with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

-- down a 48. hardware warfare -- google just unveiled its new android smartphone, the first motorola mobility product developed completely under google's titans after google bought that could money for $12.5 billion last year.

It's a big gamble for google in a market currently emanated by samsung and apple.

Is there room for this new phone?

We have a bloomberg contributing editor, the principal at software capital, and our tech guru.

Sam, you happen to have one of these phones handy.

Behold.

Three cool.

-- pretty cool.

It looks a little like an iphone.

It is actually rather attractive.

Nothing very offensive about it.

That is a white, a direct assault on apple.

There is a black version, white version, but most interestingly, they're going to have a website where you can customize the back and front in accent colors of the phone and have it shipped to you in about four days.

That is kind of cool.

They are taking a page from nike who was doing this from sneakers or mini-cooper who is doing this.

They want to bring that to the smartphone.

When the song goes on sale, it will cost about $199. it will all be built down and forward texas.

They will be assembling these at -- entirely in the united states.

They bought an old nokia plant in for work and refurbished it.

While the components are coming from the other parts of the country and internationally, it will be assembled there.

They did that so they could do the short turnaround time for custom orders which they think might make up the majority of the sales.

You've had a chance to play with it.

What do you think?

It has some nice features and good integration with google services.

One would hope so, given that it owns motorola.

You can twist the camera and it turns on -- sorry, you can't twist the phone and it opens the camera.

It has some other clever innovations.

The problem is, there have always been very promising smart phones that look very good at the launch.

The palm three look very nice.

We know what happened to that great hewlett bought it and we are still unaware of what they did with it.

The new kia -- the nokia lumina is struggling in the marketplace.

Can motorola and google breakthrough?

It is important that they break through.

What is at stake?

It is important that they break through.

There are a bunch of conflicting forces going on but fundamentally, this is about google trying to say there is an ecosystem of people building products around android, but what we want is our own experience because we see the market going in favor of apple and if we don't ship our products, we run the risk of falling back.

They look at the customization being done and they want war control over the user experience.

These customizations are just part of it.

What's happening is google is pushing the idea of low-cost sensors on these devices, so they are much more state aware.

It knows you are in your car or in your house and knows more about what you're doing because the next title front on phones is the place you are inside.

Does it know you are in your car and how does it behave?

That's the next front.

What would that look like?

The difference between in your home versus in your car.

What would a phone do differently?

On a trivial level, you see when you're talking on the phone and you get in your car, it flips the call to bluetooth.

Imagine instead most of the information you have been searching for on yelp or in the case of google, zagat because yelp is anathema.

You are searching for that and it would immediately pop up on your in car display.

More and more of the information on your phone is transparent in terms of popping up in whatever environment you are in on whatever display is handy.

That is what chrome cast is about in the home and by taking this approach, google is able to do this kind of engineering itself and start out with trivial customizations and rapidly move toward making the device come more transparent.

Lex -- what could it potentially mean for google?

The most important piece of has to take care of is making sure elders are building applications that are exclusive to google and android so that everyone in the world can have these connected device kind of experiences.

So these are the ones you see in your car when products like smart things go in your home and the lights go on.

That's not just on the software side, it's on the hardware side.

By creating this enormous community, they can have this customize hardware for business enterprise applications.

And then you get the ad revenue.

That has always been the google brand strategy, get more people on the mobile internet, searching through google and sell ads again.

The problem has been most of the money in mobile has been made in hardware.

So google has been doing this bank shot, we will make android and that will get more people online.

85% of their revenues is coming from advertising.

It's basically a media company.

You could argue this makes all the sense of the world because it's a whole new business.

85% of their revenues come from media and advertising.

90% of the products in this space are either apple or samsung.

Everyone else is competing for the other two percent area -- other 2%. the first decade of the pc industry, all of the value was created in hardware and the next 10 years, virtually zero.

You will see the exact same phenomenon play out on the phone.

From now on, all the value in this business is it layered service and software and the hardware will be an afterthought in the commodities.

We are going to be watching this one carefully.

It is very cool.

This text has been automatically generated. It may not be 100% accurate.

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