Google just announced that they are purchasing Motorola Mobility for $12.5 billion, but what will this mean for Google’s Android OS, which is supposed to be an open software platform.
In Google’s announcement, Google has said that the purchase of Motorola Mobility will strengthen Google’s patent portfolio, which they say will enable them to better protect Android from ‘anti-competitive threats from Microsoft, Apple and other companies’.
The patents that Google are talking about were the Nortel patents which were purchased for $4.5 billion by a consortium of companies which included, Apple, Microsoft and a range of other companies.
Impact on the Android Ecosystem
Google acquiring Motorola Mobility should give them a wide range of patents, and Google has said that the deal will also supercharge Android, and will enhance the platform. This acquisition is expected to provide Google with over 17,000 patents, with an additional 7,500 patents pending. These patents cover a broad spectrum of technologies, including wireless communications, 3G, 4G, and even some aspects of smartphone design. This extensive patent portfolio will be a significant asset in defending Android against litigation from competitors.
Google has announced that they intend to run Motorola Mobility as a separate business, but we wonder just how companies like Samsung, HTC, and many more will feel about Google’s recent purchase. These companies have been instrumental in the success of Android, and their reaction to this acquisition could shape the future of the Android ecosystem.
We suspect that many of the producers of Android devices will be less than happy to hear that Google now owns one of their competitors. This could lead to concerns about favoritism, where Motorola might receive preferential treatment in terms of access to new Android features or updates. However, Google has reassured its partners that Android will remain an open platform and that Motorola will operate independently.
Strategic Advantages and Challenges
The strategic advantages of this acquisition are manifold. Firstly, it allows Google to integrate hardware and software more closely, similar to Apple’s approach with the iPhone. This could lead to more optimized and innovative Android devices. For instance, Google could leverage Motorola’s hardware expertise to develop new features that are tightly integrated with Android, such as advanced camera technologies or unique form factors.
Secondly, owning Motorola gives Google a direct channel to consumers, which could be used to push new services and products. This could be particularly beneficial for promoting Google’s ecosystem of services, such as Google Assistant, Google Photos, and Google Drive.
However, there are also significant challenges. The smartphone market is highly competitive, and Motorola has struggled to maintain a strong market presence in recent years. Google will need to invest heavily in marketing, research, and development to revitalize the Motorola brand. Additionally, managing the relationship with other Android manufacturers will be crucial. Google must ensure that its partners do not feel alienated or disadvantaged by the acquisition.
Another potential challenge is regulatory scrutiny. Large acquisitions often attract the attention of regulators concerned about monopolistic practices. Google will need to navigate these regulatory hurdles carefully to ensure that the acquisition is approved and that it does not lead to legal complications down the line.
In conclusion, Google’s acquisition of Motorola Mobility for $12.5 billion is a bold move that has the potential to significantly impact the Android ecosystem. While it offers numerous strategic advantages, it also presents several challenges that Google will need to address. The success of this acquisition will depend on how well Google can integrate Motorola’s assets, manage its relationships with other Android manufacturers, and navigate regulatory scrutiny.
Source Google
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