Motorola Inc. (MOT), unlike some of its investors, isn't banking on its first Android-powered smartphones to turn around the company's fortunes.

The Schaumburg, Ill., company's stock has run up on the hope that the devices, armed with Google Inc.'s (GOOG) flashier mobile operating system, will reinvigorate Motorola's sullied brand. But Co-Chief Executive Sanjay Jha doesn't see the company's fate hinging on a potential holiday blockbuster. While he may just be clamping down on expectations before they get out of hand, his thinking suggests the turnaround may be more drawn out than some expect.

"My purpose is to get back in the game and build upon it," Jha said in an interview. "While I'm hoping it's a home run, we're not banking our financial results on it."

Wall Street has given a free pass to Motorola's fundamentals until the devices hit the market in the fourth quarter. Shares have more than doubled since March despite deteriorating handset sales and a continued loss in market share. The stock is up 8.7% Thursday to $7.14.

Motorola is on track to release two Android phones through two U.S. carriers, believed to be Verizon Wireless and T-Mobile USA, before the holiday selling season.

Nonetheless, Motorola faces an uphill struggle, not unlike Palm Inc. (PALM), which put its fate into the success of its Pre smartphone. In that case, the buzz-worthy device and Palm's new WebOS software have made the company relevant again.

Motorola, however, is a larger and less-nimble company with a higher cost structure. It hasn't had a hit phone since the ultra-slim Razr, which is nearly a decade old. Unless one of its devices sees success like Apple Inc.'s (AAPL) iPhone, it won't significantly turn the ship around.

With the latest iPhone 3GS and the Pre, along with a number of other smartphones, on the market, it's a tough environment for any new entrant. Motorola isn't even the first to use Android. HTC Corp. (2498.TW) is more than a year ahead with the G1 and Touch, and already enjoys strong marketing support from T-Mobile USA.

With so many smartphones competing for attention during the holidays, it may come down to price, and not features, UBS analyst Maynard Um said.

Barclays Capital analyst Jeff Kvaal warned that aside from the new iPhone, the recent smartphone launches have been at best in-line with expectations or slightly disappointing.

The latest trend for a handset maker is to position its products as a "hero" phone, which receives the optimal marketing push by a carrier. AT&T Inc. (T) has the iPhone, Verizon Wireless has the Blackberry Storm, and Sprint Nextel Corp. (S) has the Pre. With so many devices angling for attention, it's hard to see how Motorola nabs one of those coveted positions.

Jha said he would push for more carrier support but declined to comment on how Motorola's products would be positioned.

"I will let the carriers make the call," he said. "They're capable of being a hero device."

Acknowledging the competition, he instead pointed to the importance of the pending portfolio of devices using Android, rather than these first two devices. Motorola plans to have multiple Android devices next year addressing the low- and high-end smartphone market.

While having multiple devices on different carriers is a smart way to diversify the business, it may not be the shot in the arm that many investors are envisioning.

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