Google’s proposed $12.5 billion acquisition of Motorola Mobility throws up the big question ….
Why?
* First and foremost, buying cellphone, set-top boxes and tablet vendor Motorola Mobility for $12.5 billion (a 63% premium over Friday’s closing price) is a tacit admission by Google that ultimately Apple’s closed model of controlling all aspects of the smartphone experience (hardware, software and AppStore) is superior.
All but the diehard Fandroids would acknowledge that the iPhone or iPad user experience is far superior to Android be it in the user interface, availability of apps, security or developer support for the platform. We’re on our second iPhone and first iPad (V.2) for the most part have no complaints. Reviews of Android devices have rarely approached anywhere near the gushing praise its primary rivals, the iPhone or iPad.
It’s true that Google’s Android software has made considerable inroads in the smartphone market with 150 million devices and 550,000 activations a day. But when multiple vendors are peddling Android and the widgetry is cheaper than the iPhone, then 150-million doesn’t look that earth-shattering a number as it does on first blush.
* Second, Motorola has amassed a huge cache of patents, an area that Google has found itself to be at a disadvantage vis-a-vis Apple and Microsoft. Motorola has 17,000 patents and 7,500 patent applications.
Android vendors have already seen lawsuits from Apple, Microsoft and Oracle. From Google’s perspective, the patent outlook must have seemed pretty grim. With the acquisition, Google has muscled up on patents and provide a tough challenge to any rival in the court-room. Google executives made no secret today about their intention to protect the Android ecosystem.
* Third, the problem of fragmentation of Android must have been high on the minds of Google executives. While it’s true that fragmentation never occurred with Windows despite multiple PC vendors selling it, with Android there are two layers – manufacturer and carrier – before the gadget reaches consumers’ hands adding to the complexity of rolling out features, pushing updates, security fixes and getting more software developers on board to build apps for the Android platform.
* Fourth, the deal gives Google’s mobile ad programs a big boost by providing a huge captive base of phones to play with. With so much captive real estate available, the sky is the limit for what Google can do with it. For instance, Chrome can be the default browser, and easy access buttons for Google Local Pages/Place Pages can be offered on the Motorola phones.
* Fifth, Google can now be the default search engine on hundreds of millions of phones and tablets.
* Sixth, Motorola’s set-top boxes provide an entree for Google to launch a renewed push into the TV market where its success to date has been limited.
* Just Kidding: Finally, Google wanted to make desi boy and Motorola Mobility CEO Sanjay Jha richer by $90 million (thanks to Jha’s severance agreement).
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Jain Temple Bartlett, IL (Rama Dasa )
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