Why the Moto X Has an Edge on the Competition

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Aug. 2 (Bloomberg) -- Bloomberg Contributing Editor Nicholas Thompson and Bloomberg Businessweek's Sam Grobart give their initial impressions on Google's first homegrown entry into the smartphone market, the Motorola Moto X. They speak on Bloomberg Television's "Market Makers."

Are packing the moto x. sam have a white one.

It matches my parents.

I'm fairly impressed by.

What am most impressed by it they try to do something new.

They integrate google now, which takes your entire search history, everything you have taken into the google, and makes recommendations for eager to tell the but what traffic, flight records of -- flight reservations, all that information.

It has taken a good it harkens the power of big brother.

Absolutely.

It is kind of creepy, but you wake up and start talking to your phone, and starts doing the things you wanted to do.

Ok, google.

What do you think you ? i'm impressed with the configuration options.

You can change the color of the back, the front of the details.

They will have a what it back, on -- online configurator.

It is like buying a mini when you pick up the colors you are for the roof and everything.

Let's be honest, the wow factor is gone.

There is no wet when it comes to smart phones.

These are kind of old phones.

Quite the phones of the same, they do the same thing.

Right.

It is available on the iphone, and it doesn't pretty well.

Not the same kind of the voice activation.

They try to have a little while, but your point is correct.

The format it -- the phone market is competitive right now.

There have been a lot of chatter about how much motorola and therefore google is going to spend to advertise this phone.

The figure is about half $1 billion.

That is a lot of money for a single product.

Bear in mind that last year, samsung spent $4 billion in advertising, plus $11 million and other marketing expenses.

It is one thing to make a products, lots of product that's company that made the products, but to get people to be aware of it in to change their mind about it, that is a whole other challenge.

Perhaps they like the made in the usa factor.

I'm just wondering if google has proven that that $12 billion acquisition of motorola was worth it.

No.

they suggested that maybe without a colossal bust.

They spent a lot of money, it has been bringing down their bottom line.

It is not clear that the patents are even worth the $6 billion they said the patents are worth.

This makes me feel a little less bad about the acquisition.

It certainly does not prove that it was a good acquisition.

Sam, the account that i've seen up how this phone was developed, inside motorola as part of google, are that inspiring, really, the lack of cooperation -- of the pretty ugly thing from what i heard.

It really did not go over it well.

A lot of people were let go, new people were brought in.

Could this, should this phone have been better?

It is hard to say.

Right now, it seems to be as good as any fun we would come to expect.

It doesn't have any particular thing that makes me go oh, my gosh, this is amazing?

No.

but it is totally competitive.

And the price is competitive at $199. but that is what they'll cost.

Listen, the palm pre came out a few years ago and everybody thought that was great.

It tanked.

Nokia's lumia is a good phone.

Kind of thinking.

It is not enough.

I do think that google has a lot of market power.

They have people that use all of their services, they're starting to integrate more fully, and if people believe that this is the true google phone, the phone that will provide the best services.

-- the best services for people who love google profits -- products, that is great.

How else do get them to believe?

The smart people at google, serbian larry, what can they do to wake the world up to the possibility of moto x? if people start using it and taking it into the wild and love appeared.

We were pumped when theory came out.

-- when siri came out.

Quite i think i'm the only one who still uses that.

It turns out siri does not work in the wall.

If this works in the wild, and you can talk to your phone without holding it, fill it a completely new thing, people start to share it, yes, it will sell.

Is there enough here that will make me convert from an iphone?

It is hard to break people out of that inertia.

Once you have gotten used to it of -- a device and you have your stuff on, that barrier to change, it is like an switching bank accounts.

You are not going to change your billing and everything else.

It is very hard to make people budget out of what they are already entered there is the apple cult with the ecosystem that will be challenging.

Google is getting -- is quite an android cult.

Sam, you spent a lot of time in korea with the fans on not long ago.

We heard and seen reports of samsung working to break its dependence on androids.

Where are we with a samsung mobile os?

They have a mobile os called baidu.

The relationship between google and samsung is very complicated.

Ever more so now.

Absolutely.

It was collocated when google was releasing nexus phones with other orders.

But now with this owner performed internal -- preferred internal help, who are getting most of the profits because they're selling the actual hardware.

Wife can you break the addiction?

-- can you break

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

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