#7858080, By presh Google buys Motorola Mobility for 12.5 Billion

  • presh 16 Aug 2011 10:02:50 1,221 posts
    Seen 2 years ago
    Registered 12 years ago
    Hmm, I'm gonna speak to people I know at Motorola in the US and see if I can get the inside story on this, as it seems a pretty strange deal on the surface. I do know that Motorola's handset division has been in a terrible state, and even poaching Motorola from Qualcomm hasn't been enough to stop the rot.

    As has been pointed out, it can't be about the patents - as Motorola tends to license most of its handset tech. For example, the Xoom uses Nvidia chipsets, other handsets using Qualcomm. It spent so long making money out of old tech in a flashy case (the Razr, sold over 12 million handsets iirc) it had to license rather than R&D to try and catch up - and it still hasn't.

    What about Google using Moto purely as a manufacturer of tablets - leaving all the handset licensees as they are? That would been less issues with competition from customers, and it lets Google/Moto chase the high margin space where it's being blasted by Apple. Yes, Android is no.1 in terms of installed OS, but it's iOS where the money is, and it's on tablets where we are seeing the mobile/desktop convergence that Google really needs to be involved with.

    Don't forget as well that Google is trying to push chromebooks, but without a big manufacturer supporting the rollout they could well flounder. That could be part of the strategy behind this move.
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