Motorola (NYSE:MOT)
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Motorola Inc. (MOT) on Thursday unveiled its first mobile phone powered by Google Inc.'s (GOOG) Android operating system, a launch that could prove to be a crucial moment for the struggling handset maker.

Motorola said its new Cliq, which it called the world's first phone with "social networking skills," will be available in the U.S, U.K., Spain, France and Latin America in the fourth quarter. Sanjay Jha, the company's co-chief executive, said Motorola will launch a second Android-powered device in the next few weeks.

Also appearing on stage with Jha at the Mobilize 09 conference in San Francisco was Cole Brodman, chief technology officer at Deutsche Telekom AG's (DT) T-Mobile USA, which will carry the Cliq exclusively in the U.S.

Orange, Telefonica and America Movil (AMX) will also carry the phone, which will be called Dext in markets outside the U.S.

A key feature of Cliq is social networking software dubbed "Moto blur," which syncs into a single stream a users' phone contacts, emails, posts, feeds and photos from a wide range of messaging and social networking services such as Facebook, Twitter, MySpace and Gmail. Pricing information on the phone will be announced at a later date, the company said.

Motorola needs to find a worthy successor to the Razr, which shot into the market eight years ago and forced rivals to churn out copycat ultra-thin phones. The company's failure to follow up with the device, particularly in the burgeoning smartphone market, led to Motorola's collapse.

Jha said the Cliq would not be a make-or-break phone for the company, but was instead an important starting point that sets the direction for the company. "It's the first step in a long journey," he said.

For Google, the phones are part of a wave of new Android-powered devices expected to ship by the end of the year, giving the Internet search giant a chance to make a splash in a market dominated by Apple Inc.'s (AAPL) iPhone and Research in Motion Ltd.'s (RIMM) Blackberry.

In the second quarter, Motorola's share of the global handset market fell to 5.4% from 9.5% a year ago as the number of phones shipped fell by half, according to Strategy Analytics. Samsung Electronics Co. Ltd. (SSNHY) and LG Electronics Inc. (066570.SE), meanwhile, have overtaken the embattled handset maker.

Motorola has a lot riding on the success of its Android-powered phones. Earlier this year it scrapped several promising devices and shelved its development of Windows Mobile smart phones to focus solely on the Google platform. Analysts have said it is crucial that the early products perform well and create the momentum needed for the next wave.

The products will also be the first major test for Jha since taking the reins of the mobile devices division late last year. Wall Street has largely given Jha and the company a pass over the last several quarters as they awaited the new line of products.

Maribel Lopez, head of Lopez Research, said the user interface, which will be applied over the standard Android operating system and tie together personal information from different social networking sites, surpassed those by Palm Inc. (PALM) and Apple.

Still, if Motorola wants to succeed, it will need to get its products to more carriers, Lopez said. "At the end of the day, there is a huge opportunity out there and now Motorola has a chance to benefit from it," Lopez said.

Other analysts said the phone was strong, but not significantly different from what was already on the market.

Ross Rubin, a product analyst for NPD Group, said the Cliq was intended for a youthful crowd looking for an affordable device. He expects the second Motorola smartphone to come out at the higher end and feature more interesting hardware touches.

A number of other handset makers and wireless carriers are expected to embrace Google's upstart mobile platform over the next few months. The open-source software - which is free to phone makers and third-party developers - was announced in late 2007, but only four phones running the software are currently on the market.

Google developed the software to stake its claim in the mobile search advertising market, which the Mountain View, Calif.-based company expects will become an important source of revenue over the next several years.

The company said recently it expects there will be at least 18 Android devices on the market by the end of the year.

Sprint Nextel Corp. (S) said recently it plans to release HTC Corp.'s (2498.TW) Hero smartphone in the U.S. in October. The Hero is expected to be the first Android device compatible with CDMA, the underlying mobile standard used by Sprint and Verizon Wireless - jointly owned by Verizon Communications Inc. (VZ) and Vodafone Group Plc (VOD).

Recently, Motorola shares were up 1% at $7.92 while Google's were up 1.1% at $469.

-By Scott Morrison, Dow Jones Newswires; 415-765-6118; scott.morrison@dowjones.com

-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com