Google buy Motorola

[rblnr]

http://www.marketwatch.com/story/go...ty-for-125-billion-2011-08-15?dist=beforebell

Now we have two big hardware/software companies in this space. Three if you count HP. Main reason given was to acquire M's mobile patents to defend Android. Claim is the Motorola Mobility will remain a separate entity and Android will remain open.

Interesting to see how this plays out in the Apple vs. Google war, and in the Android world itself. Hard not to see how Motorola phones wouldn't have a competitive advantage down the road.

Looks like Carl Icahn did OK on the deal.

 

[amirm]

Pretty clever move on the patent side. That will likely create a patent cross license deal with Apple as the later most likely steps on many Motorola patents.

Bad news though is outside of that. Google moving beyond pure gravy money making machine of search into hardware and such.

 

[rblnr]

Bad news though is outside of that. Google moving beyond pure gravy money making machine of search into hardware and such.

Why is this bad news?

 

[amirm]

Imagine building a million handsets, going to market with them and the carrier telling you three months later no one is buying them. Recall that happening to Microsoft's failing phone and Google's own entry.

Imagine having parts shortages. Imagine having reliability issues causing expensive recalls and fixes. Imagine getting sued for batteries going bad/catching fire, etc.

It is a pain in the neck to be in hardware business .

 

[rblnr]

Imagine building a million handsets, going to market with them and the carrier telling you three months later no one is buying them. Recall that happening to Microsoft's failing phone and Google's own entry.

Imagine having parts shortages. Imagine having reliability issues causing expensive recalls and fixes. Imagine getting sued for batteries going bad/catching fire, etc.

It is a pain in the neck to be in hardware business .

Well, Apple manages OK with this.

Looks like Google has its PR machine in order:

http://www.google.com/press/motorola/quotes/

 

[amirm]

Apple is unique in that manner. It has steve jobs, has great industrial design and brand. Moto doesn't have all of those assets although their Droid line is very good in the middle bucket.

Their licensees probably are hoping Google will screw up Moto but then keep the patents and with it, make them more secure .

 

[rblnr]

This is more of an attack on another writer who's a longtime Apple critic, but the last paragraph and line are priceless:

http://parislemon.com/tagged/on

hit the 'read more' below the rope-a-dope post