Google 'Supercharging Android' With Acquisition of Motorola Mobility

[ChazUK]

So you really believe it was a coincidence that they all used the same terms in their press release? I welcome the company that makes our OS competing with us for hardware sales. Interested in a bridge I have for sale?

I'll have to take a "wait and see" approach on what happens with android OEM's. With no insider knowledge on what happened, who was informed and how long this has been going on, I can only trust what the PR teams have released. Perhaps it's just me "doing it wrong" so to speak.

Now, about that bridge....

 

[Glideslope]

I really don't follow the Motorola cell phones...but had a Razr back in the day.

I think Apple's now in for an even bigger battle as Motorola now has big big bucks filling it's pockets to fuel more and better Androids.

True, but it will also make it impossible for Google to be successful with Anti-Trust complaints. Google sees the fees Apple will be collecting on each HTC, Samsung handset
soon. Perhaps Google thought this move would make Apple try to block imports of handsets? If so, big mistake.

So, it's a win for Apple in that only Motorola Mobility will be the Android competition. However, with the influx of cash watch for the buy 1 get 6 free mode on Moto Phones.

HTC and Samsung are now second rate players. They will always have the "old" version/features. They will also fund Apples continuing development of iOS, at $5-10 per handset which is the most secure consumer Mobil OS currently on the market.

Desperation move by Google. Nothing will change with Android until the fragmentation is stopped. This will mean a less "open" system. It is already starting. While it's always great to be open todays society is too full of scum, criminals, and just plain assh****. Google has had it easy as Apple has been a nice big fat target for Android users.

Once Rubin starts to clamp down on the fragmentation, hostility will turn inward.

Exciting times ahead.

 

[Otaviano]

I really don't follow the Motorola cell phones...but had a Razr back in the day.

I think Apple's now in for an even bigger battle as Motorola now has big big bucks filling it's pockets to fuel more and better Androids.

Motorolla has **** for marketshare outside of the United States, I really struggle to understand this move. Do they want their patents for protection? It must be that.

 

[BC2009]

Hats off to Google, this certainly changes the game a bit. Plus it's brilliant to first commoditize mobile phones with a common OS, watch the manufacturers race to the bottom on price, and then acquire one of those manufacturers. I did not check Moto's current earnings, but last I checked Moto's mobility division was losing money or breaking even (though that was the case pre-android well). Either way, Google has put Moto's competitors at a disadvantage, essentially crippling the competition if they choose to be evil with this move.

Call me stupid, but I honestly think this is a bad idea. Google has basically just got married (Motorola), whilst having having loads of other girlfriends (HTC, Samsung, LG, etc.).

Don't you think this acquisition may put other companies off the idea of using Android?

it certainly will to some degree. I see potential for an HP/HTC deal next.

Hopefully, people will take stock of the official word from OEM's.

Translation..... "we'd better downplay this before our stock plummets". Each one if these manufacturers is making a plan B right now.

Watch Microsoft buy HTC

I think HP is the more likely one to cut a deal with HP, but time will tell.

Likely. You really believe that all the other Android manufacturers "welcome" Google buying Motorola? Give me a break.

Wonder what Google promised them for their "cooperation".

Absolutely correct. Those guys have to downplay this, what other choice do they have?

Over 17,000 patents to crush Apple with. Go Google!

Moto's patents are nothing new, they have always had them to use against Apple. However, this makes Google the defendant against Apple for the first time. Thus far Apple has avoided suing Google directly, now Google is squarely between Apple and Android on the Moto front. Maybe Google has some cards to play in such a lawsuit as a defendant against Apple. It will certainly change things up.

Stock holders for all of those companies should be concerned that their CEOs are giving statements dictated by a partner.

Yes.

Motorola sued Apple back in Fall 2010 for not licensing about 20 patents related to 3G, GPRS, WiFi and antenna design.

Apple countersued shortly afterwards with a handful of patents (increased later to also about 20, off the top of my head).

So those two companies are already at battle.

Exactly. I don't really see Google's move to be about acquiring patents - I think that is a diversion. I think there is much more to Google's strategy here. This is certainly the biggest news in the handset game all year. And given Google's competitve track record (just ask Yelp, Groupon, and Skyhook regarding the latest FTC investigation into Google's anti-competitive practices), I think Apple, HTC, Samsung and Microsoft should all take note of this. Google has big plans with this acquisition - its just about execution now.

EDIT: if Google thinks Moto has a good chance of a settlement and cross-licensing with Apple, then Google may see this as an opportunity (as a defendant) to demand a license that covers distribution of Android to third parties - who knows, just speculating there.

 

[cmaier]

I imagine Samsung will be the first to jump off the Android ship, as it will take longer for HTC to come up with a decent alternative OS.

Should be fun.

 

[mobilehavoc]

People don't read anything properly or are too stupid to understand what just happened and instead go back to their fanboy roots of Apple vs Android. It's not about that at all. It's about buying one of the largest patent portfolios in the phone industry and then you can cross license it to HTC, Samsung and all your other Android partners.

What does this do? Stop Microsoft and Apple from remotely having a chance at winning any lawsuits against them. If nothing else both Microsoft and Apple should be a little worried because from what I understand Motorola has some of the most core/essential patents when it comes to cell phone technology.

They've said repeatedly that Motorola will continue as a separate business and compete with other Android partners as normal - no favorable treatment.

It's all about the patents...that's it.

 

[drewyboy]

Call me stupid, but I honestly think this is a bad idea. Google has basically just got married (Motorola), whilst having having loads of other girlfriends (HTC, Samsung, LG, etc.).

Don't you think this acquisition may put other companies off the idea of using Android?

I think Google HQ needs to move to Utah

 

[macnews]

Your precious patent system only protects the interests of the big money, it doesn't help small companies at all. THAT is how your capitalism works.

I agree the patent system sucks but the idea it protects the interest of big money and then blaming it on capitalism is way off base.

Small guy creates an idea and patents it. Then along comes some other company that wants to buy that patent. They pay little guy big money for his idea and patent owner ship. They then go out and sue people who are violating the patent. Some of that money may go back to the "little" guy who originally owned the patent.

Since this little guy is now getting money, is he part of the "big money"? I think he would argue otherwise.

And if you are going to blame capitalism, can you offer another solution? I'm not sure I have one so I am being sincere here. The "capitalism" argument is just so tired. What would we do instead - give them to the gov't? I trust them about as much as I trust Google and other big business.

 

[Clown Boy]

Today is the beginning of the end for Apple...

Remember this date, 15/08/11.

Steve Jobs just took a humble.

 

[smiddlehurst]

I would have thought that members of the Open Handset Alliance would be relieved that they're in a position for Google to protect them against others.

A lot of OEM's get their (smartphone) bread and butter from Android with little alternative at the moment. What would happen if HTC was forced into a position where they had to drop Android? Move to WP7 exclusivity? Bada? WebOS? Maemo? Symbian?

There would be no way to turn as it stands today.

Except that they're not in that position in any way. First this acquisition has to go through the various regulatory bodies, that's going to take at least six months, probably longer. Then Google has to try and convince Apple, Microsoft and Oracle (at the least) that what it has in the form of Motorola's patent portfolio is worth not only a cross-licencing deal but also a platform wide one. That's likely to be somewhat tricky and will drag through the courts for years. In the meantime the lawsuits currently being faced by various Android manufacturers are still ongoing and even if Google DO manage to get the platform covered there's no guarantees it'll either be quick enough to stop those lawsuits or that there won't be damages awarded up to the point those licence agreements come into force. The other alternative is to cross-licence those patents to other Android manufacturers but my understanding is that would only protect the manufacturers from being sued for using those patents without a licence, they can't use them as a weapon against others.

I also strongly disagree about there being nowhere to turn. Let's not kid ourselves, the public don't really care that much about Android or WP7. They care about being able to get a smartphone at the lowest price possible with the features they want in a design they like. At the moment the bulk of devices out there are Android as a) there was very little choice for maufacturers up to a year ago and b) even when WP7 came out Android still had a clear edge in cost (both in OS terms and hardware requirements). If manufacturers decide to turn to WP and invest both time and money to put it at least even with Android they'll be able to shift units provided they can match Android's price points. Remember that the manufacturers ultimately sell to the carriers and if the carriers see a good deal they could shift quite quickly away from Android and start pushing WP.

 

[pjo]

So are all of these patents "bogus" or are they legitimate because they were purchase by Google? This seems like a "hostile, organized campaign against" the owners of patents that Android currently violates.

lol. The sarcasm in your post noted, I'd think it's a good deal for Motorola.

 

[ugahairydawgs]

Don't worry people we're still winning!!! iPhone 5 will blow them all away there's nothing Google can do to stop us.

That sounds very cult-ish

 

[stupendousman8]

Tell that to all the small companies who are being relentlessly copied and ripped-off by the big players - including Apple - and simply do not have the financial means to defend their rights in court.

If those small companies have patents that are being violated, then those patents have real value. If the small companies don't have the financial means themselves, they can always sell those patents to one of the patent troll law firms (with the stipulation that they have free license to use the patents themselves), who DO have the financial means.

AGAIN - PROFIT for those who have innovated.

It's not a "zero sum" game if you are truly innovating.

 

[Tarzanman]

What a lot of you fail to realize is that this wasn't a move by Google to protect Google.

From Google's perspective, they are already kicking the crap out of Apple. The only thing Google has made (up until now) is Android. Android is already far more prevalent than iOS, and growing way faster than iOS.

The acquisition of Motorola mobility gives Google two opportunities.

1. They can protect all of their hardware partners (Samsung, LG, Sony, HTC, etc) from patent trolling by Apple and Microsoft (seriously, those two in bed together is bad news).

2. They can now go directly toe-to-toe with Apple by designing their own software AND hardware. Phones and tablets and whatever else google can think up that uses mobile data.

This was a move to protect the growth of Android by protecting Android's hardware partners

 

[gr8whtd0pe]

This smacks of desperation to me. Paying a 60% premium for the worst of the Android manufacturers. Not to mention having to integrate 19,000 employes into your 29,000 employee company. Google down 3% pre-market. They must really be infringing on a ton of others patents.

Validates Apple's business model.

Samsung and HTC must be livid. Like they want to compete for hardware sales with the guys who make their OS.

I think RIMM is now officially done.

I agree with all of this, especially the last two lines.

 

[drewyboy]

Today is the beginning of the end for Apple...

Remember this date, 15/08/11.

Steve Jobs just took a humble.

Should I laugh at you now or later? Do you know you're probably the 1.38th Billion to say this in the last 10 years. Please.... get in line.

 

[h0mi]

MS takes Nokia, HP takes Palm, Google takes Motorola and Apple takes er...Apple...or Nortel along with MS.

Interesting that HTC and Sammie now have to compete with Google who is meant to be a partner...WP7 and even webOS are starting to look attractive as licensing options now.

HTC and Samsung already do make WP7 phones as well as android OS. I was looking at a wp7 HTC phone yesterday at the MS store.

 

[stupendousman8]

The problem is, much of today's innovation occurs in small increments. Yet, much of the patents that exist are broadly defined. That is what is slowing innovation. It'll get to the point that you have to license a button location or even the quickness with which a device wakes from sleep.

So it's not the patents, but rather the broadness of them?

I'm pretty sure that most of the patents that we are talking about, as far as Google goes, aren't as simple or basic. Most believe they (especially with Java) they've been involved in almost total theft of entire products.

 

[dgree03]

This further confirms now, that it must be all about the patent protection

http://www.androidcentral.com/motorola-wont-have-exclusive-nexus-devices-andy-rubin-says

 

[drewyboy]

What a lot of you fail to realize is that this wasn't a move by Google to protect Google.

From Google's perspective, they are already kicking the crap out of Apple. The only thing Google has made (up until now) is Android. Android is already far more prevalent than iOS, and growing way faster than iOS.

The acquisition of Motorola mobility gives Google two opportunities.

1. They can protect all of their hardware partners (Samsung, LG, Sony, HTC, etc) from patent trolling by Apple and Microsoft (seriously, those two in bed together is bad news).

2. They can now go directly toe-to-toe with Apple by designing their own software AND hardware. Phones and tablets and whatever else google can think up that uses mobile data.

This was a move to protect the growth of Android by protecting Android's hardware partners

Please define "kicking the crap out of Apple."
Are we talking about market share?
Market revenue share?
Mindshare?

I'm not being a fanboy pointing this out. According to "traditional" business methods, Google should be walking all over Apple. Yet, when it comes to the basic principle of business, $$$, Apple is walking all over EVERYONE. That is pure fact. I do agree, in all other things, android is winning, but the force is still strong with Steve, and Apple is defying all "traditional" business practices.

 

[stupendousman8]

People keep saying apple invented and innovated !!! What was it ? Google saw Apple trying to corner the market and intercepted. Apple has stolen many patents making the iPhone.

Which ones?

What phones worked like, or looked like the iPhone back in 2007?

Which ones do now?

Who innovated - Apple or all the people who copied them?

 

[Xenomorph]

This reminds me of 3dfx, and that isn't a good thing.

 

[nylonsteel]

re original articles

man goog you've got...

"big bal_s..." - ac/dc

but aapl got the
"biggest bal_s of them all..." - ac/dc

 

[daneoni]

HTC and Samsung already do make WP7 phones as well as android OS. I was looking at a wp7 HTC phone yesterday at the MS store.

I know i meant they might start pouring more resources into those platforms and put less emphasis on Android. As opposed to the way things are now which is the reverse.

 

[BC2009]

...

What does this do? Stop Microsoft and Apple from remotely having a chance at winning any lawsuits against them. If nothing else both Microsoft and Apple should be a little worried because from what I understand Motorola has some of the most core/essential patents when it comes to cell phone technology.

They've said repeatedly that Motorola will continue as a separate business and compete with other Android partners as normal - no favorable treatment.

It's all about the patents...that's it.

Still MS is managing to snag $15 per handset from Moto, so the Moto portfolio is not so strong against MS. maybe Google plans to countersue Bing over their search technology, but they have not done that to date either. There is more to this than we yet see. Google has not revealed all their cards yet. The patent angle does not yet fit perfectly unless Moto is about to cross-license with MS and Apple and Google wants to demand terms to cover their third-party android OEMs.