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Why would Motorola waste time and resources on the ultra-low-cost DFX?

Insiders told Phone Arena that Google subsidiary Motorola is preparing an ultra-budget device codenamed DFX. But why would Motorola waste resources developing such a device?
June 27, 2013
new motorola logo

We already know that the Moto X, also known as the X Phone, is real and it’s coming in the following months. Motorola CEO Dennis Woodside himself assured us of that, confirming the multitude of leaks that have begun swirling at the beginning of the year.

Our own sources told us that there will be only one X Phone coming this year. However, that doesn’t mean that Motorola will release only one phone in 2013. Yesterday, @evleaks revealed the alleged names of two other devices that Moto is developing for Verizon – Droid Razr Ultra and Razr M Ultra – and now Phone Arena revealed that the low-cost DFX will be released by the end of the year.

If the report turns out to be true, the Motorola DFX (apparently, an internal name) will be “ultra low cost” and targeted at the remaining billions who don’t have access to the internet, or any computing technology for the matter.

Why would Motorola waste resources and time developing a phone that it will have to sell at cost or even at a loss? Because it’s the Googley thing to do.

The Google way

As the recent change of visual identity suggests, Motorola is very much a Google company now, despite of all the talk about the firewall supposedly erected between the two companies. In other words, Motorola is going to promote Google’s agenda in the future, and what interests the Mountain View giant the most is to have more people online, visiting websites, clicking on ads, and fueling its formidable AdSense money making machine.

Think about what Larry Page said at Google I/O in May. Think about Project Loon and Google Fiber, about the partnership that Google entered with Bharti to offer free internet service in India, or about the tablet-equipped internet cafes that Google has been sponsoring in Sub Saharan Africa. All of these seemingly starry-eyed initiatives are part of a grand strategy to expand the reach of a Google-central internet across the globe.

If Google manages to turn itself into the gateway to the information age for the billions of people that are now offline, it stands to win enormously. The DFX, if real, would be just a step in that direction.