Google will not endanger its valuable alliance with Android makers by beefing up Motorola, but instead, take what it really needs in the unhappy phone maker, departing it to hemorrhage out.
Mototola reported deficits again this quarter, with poor sales and merger-related costs dragging the organization lower. Though 20 % from the company's deficits were associated with its pending merger with Google, the relaxation originated from lackluster phone sales, as Samsung is constantly on the edge the organization from the market.
Google pledged to deal with Motorola exactly the same way it goodies other Android partners, but since it's new business enterprise hemorrhages money, the search giant may finish up dealing with the organization worse than its rivals, simply absorbing its parts.
The search giant's curiosity about Motorola comes from the business's robust patent portfolio, which supports Google equip itself in patent skirmishes against Apple along with other rivals. Bing is also pushing into top quality pills and mobile phones, also it could use Motorola's hardware know-how you can proceed with individuals plans.
Motorola isn't maintaining with Samsung along with other more effective rivals like HTC. The organization would likely need assistance from Google to recapture its share of the market. Rather, Bing is talking about the purchase of Motorola's more lucrative home segment, departing its flailing mobile component even much deeper within the hole, and it might not be lengthy until it starts a level larger purchase.
Google would need to execute a tricky balanced exercise to help its companion company without upsetting its more effective Android partners. Both HTC and Samsung, though initially openly encouraging of Google's purchase of Motorola's patents, have expressed a readiness to strengthen their phones on other platforms -- mainly, home windows -- and Google will not be prepared to endanger the standing of their OS with two major phone makers.
Many Android producers worried Google will favor Motorola within the wake from the acquisition, and bailing the troubled company happens to be an unfavorable signal that Google might not wish to send to the partners.
The merger between Google and Motorola continues to be pending Chinese approval, although Europe and U.S. gave a tight schedule-ahead. Since Motorola is banking around the acquisition, it may be in much more trouble when the deal doesn't happen.
Motorola might not change its finances by itself, and when Google attempts to assist the flailing company, it risks angering its Android affiliates, which can lead to a significant shakeup within the mobile industry. Google's alliance with Motorola gave it patents and increased its hardware abilities, but when it endangers the business's partnership with Samsung, it might have are more expensive than worth.
Google spent a good buck on Motorola, however the greatest threat to the wallets is really a collapse of their Android empire, which will probably remain its priority.
Why Google Will not Save Motorola initially made an appearance at Mobiledia on Get married May 02, 2012 12:05 pm.
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