Google acquired Motorola Mobility today for $12.5 billion in a bid to ‘supercharge Android’. Here we take a look at what benefits will Google get out of this massive deal and what impact will it have on consumers.
How Motorola Acquisition will benefit Google? Here are top 3 impacts that Google Motorola deal will have:
1. Mobile Hardware
Motorola acquisition puts Google in hardware business. It puts them on same ground as Apple where they will offer their own software and own hardware. While Android will continue to power Samsung, HTC, Sony Ericsson, LG and other companies’ handsets, Google now has better chance to build competitive products. They are now in better position to innovate and compete with Apple.
2. Patent Portfolio
Android is prone to lawsuits and is currently facing patent dispute claims from Oracle, Apple and Microsoft. Motorola deal will boost Google’s patent portfolio as they get over 17,000 patents as part of the deal. This will, surely, keep lawsuits at bay.
3. Android Ecosystem
This deal shows Google’s commitment to Android OS. It means a lot for other handset makers and affirms that Google is ready to protect them and will take all the possible measures to protect the ecosystem. Statements from Samsung, HTC, LG and Sony Ericsson confirm this notion:
“We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem.”
- J.K. Shin
President, Samsung, Mobile Communications Division
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“I welcome Google‘s commitment to defending Android and its partners.”
- Bert Nordberg
President & CEO, Sony Ericsson
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“We welcome the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.”
- Peter Chou
CEO, HTC Corp.
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“We welcome Google‘s commitment to defending Android and its partners.”
- Jong-Seok Park, Ph.D
President & CEO, LG Electronics Mobile Communications Company
4. Google TV
Up till now, Google TV has been a disappointment. With Motorola’s set-top boxes’ business, Google will get the opportunity to get access to living rooms with better set-top box.
5. Competitive Market
Google’s Android is currently being used on all handsets made by Motorola while Samsung, HTC, LG and other handset makers also use Android. Google did not have the benefit of having its own hardware like Apple, or having a special partnership with OEM like Microsoft has with Nokia. Now they have and it puts them in pretty good condition. By building supercharged Android phones, they will set a benchmark for other handset makers. So, now the scene looks like:
Google + Motorola vs. Microsoft + Nokia vs. Apple ++