Motorola Mobility Gobbled by Google

googlemoto1As each day passes, smartphone manufacturers aim to one-up each other with some form of innovation or litigation. This arena of communication remains a dominant battleground for major corporations, and with Apple leading the front, old players have had to hone their proactive skills.

On the OS front, Google’s Android has used the power of multiple manufacturers to take a stranglehold of the market. However, Apple still holds the strong following of a complete product manufacturer, in spite of recent heat from the Korean giant Samsung. With the Cupertino Mac manufacturer making strong legal challenges on patent issues, which has been viewed by some as restrictive measures reminiscent of yester-year’s Microsoft, there has been some concern on whether this is simply to slow down the growth of Android devices.

Well, it seems that Google has taken to the challenge by entering the smartphone arena as a complete manufacturing entity; buying out Motorola Mobility, the cellphone arm of the American communication giant, for $12.5 billion in cash (paying $40 a share). Does this mean the next Nexus with Ice Cream Sandwich will be a Moto?

On the PR front, there have been the usual commendations for other industry players. However, some concern is being highlighted by analysts, especially over the future of Android. The free open-source OS has been the key facet for consumers purchasing HTC, Samsung and Sony Ericsson devices, in addition to certain hardware features.

Google has been quick to denounce such concerns, stating that the Motorola unit will remain outside the realms of the Google as a self-functioning unit. However, there is likely to be research in the hardware facets that the search giant deems necessary to complete with Apple, and Motorola would be able to offer some of the best intellect on this.

But this purchase for Google is more than just being a complete smartphone manufacturer and diversifying the revenue portfolio. It’s about increasing the patent library, with Moto having around 17,000 of them in store and another 7,500 pending in applications. This arsenal should be enough for Google to retaliate or initiate any legal challenges posted by competition.

So, the question arises: will we be seeing an Iron Man 2 version of slim screen super device in the near future, or are industry players simply bunkering up to dry cash reserves with court cases? Apple is due to announce its new iPhone in September, and Google hinted on a new Nexus later the same month. That will pave the way for the next big thing for consumers to splash their cash on.

  • Its fairly common in the US for larger corporations to buy smaller ones. Its considered good business practice.

  • This acquisition in all light is correctly being viewed as a bid to safe house google from the much embroiled Android platform due to its patent issues. They have already had to settle quite a few law suits in hundreds of million dollars in total.

    This was their best bet to get a lot of patents 14500 + more than 7000 that are pending to be exact which motorolla owns. No one can say what the future will bring, whether there will and extraordinary boom in the droid market from motorolla or not. First quarter of 2012 will reveal some plans but till then the acquisition will be rolled out.

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