Aug 15, 2011

Dial M for Motorola

Google has gone and bought Motorola, or to be more precise its mobile phone arm which got spun out of the larger Motorola. As I posted earlier in July, Google is not stupid, it did not overpay for the Nortel patent for nothing. Because, as it now transpires, it had something even better in the works...

The first question is, how will HTC, Samsung react because they now have to face competition from Google! After all, mobile vendors share their product development plans with Google which in turn shares OS plans and so on, so why would you do that with someone that will also sell what you do?

Logical questions, but the reaction of the phone vendors are worded so alike, they seem to be singing the exact same song - "we welcome Google's commitment to defend Android and its partners'.

Me thinks there is very little chance of any worrying conflict of interest. Firstly, other than Apple, no one, not even Microsoft to Nokia, is willing to grant monopoly to a single vendor. So there is not that much choice.  Secondly, the phone vendors are not saints, they too dabbled with OS, such as Bada. Thirdly for Google,  Android is not a ticket to making money selling hardware, it is something much bigger. It would be foolish indeed to let partners fail simply to sell more Defy II phones. 

And as we remarked earlier, in case you missed, they are not exactly fools

Is $12b too much?

Who can tell? Remember, Microsoft will pay 'billions' to Nokia to get them to make Windows phones. We dont know how many billions. And Motorola as 17000 or so patents as per news reports. Some of them could come in handy dealing with those pesky patent trolls that are digging for gold in Mountain View. 

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