Google Buys Motorola Mobile Division
Google have announced that they are to purchase the Motorola mobile division known as Motorola mobility.
It’s a significant move for Google as up until now they have been a software provider (except for some speciality server technology and Google mugs & t-shirts!).
Google’s purchase of Motorola Mobility, for $12.5 billion subject to shareholder and regulator approval, marks a significant shift in their mobile business model.
They are now able to produce the mobile hardware that can host their mobile Android software. It also allows Google to become a full service business as Motorola produce tablets as well as mobiles.
How this will affect Google’s current Android partners is yet to be ascertained, although Google produced a document signed by several welcoming the news.
With Microsoft’s new mobile OS snapping at the heals of Apple and Google as far as features go, some manufacturers might feel it is time to look elsewhere.
Google Patent Problems
Google have also had problems with technology patents, Apple is very active in the courts challenging other phone manufacturers that it says are infringing it’s patents. The most successful Android based manufacturer, HTC has recently lost a court battle with Apple that affects all it’s handsets.
It’s possible that this was a driving force for Google as it wants to insulate itself as much as possible against this kind of action by purchasing a hardware supplier they can then control to ensure supply. It also won’t have passed their attention that Motorola mobility owns well over 20,000 patents themselves.
Shares in Motorola Mobility jumped 57% when the news was announced and troubled phone manufacturer Nokia also had a significant share rise as they are seen as ripe for takeover themselves.
Before Apple came along with their iPhone and redefined the market, Nokia were the no. 1 mobile manufacturer, but it has since seen it’s market share trampled on by the iPhone and Android handsets.
Various Nokia operating systems have failed to deliver the required stability, function and features shown by Google or Apple’s software and now required in today’s competitive market.
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