Google Acquires Motorola Mobility

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you2

Diamond Member
Apr 2, 2002
6,006
1,150
126
The number of patents is not that useful; it has more to do with what invention the specific patents cover.

I'm in no position to compare the two portfolio but it would be interesting to hear from someone knowledgeable on the topic.

While it is likely this was in the works for a while it is not clear when it was likely to actually occur (i.e, does the loss of the N. patents influence the need to acquire and therefore the final price?)
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
Apple doesn't care about market share. Well it does care but it doesn't care that it's not #1. If Apple wanted to be #1, they would be releasing variants of the iPhone. Think of it this way, Apple has released 1 iPhone a year. Android is on ~100s of phones a year. I would be hoping that there are more Android phones than iPhones.

You have to wonder though in an alternate universe if Apple did make multiple variants of the iPhone what their market share would be and if it cannibalizes their profit.
 

Pliablemoose

Lifer
Oct 11, 1999
25,195
0
56
People will continue to overpay for iPhones, by licensing iOS you stop Android market share growth.

But you guys are probably right...stupid move.

I hope Google is sending a clear message to their hardware partners that this will strengthen their partnership.

I'm really not trying to be an Apple apologist here, but, when you have a goodly chunk of the market, you sell virtually every device you can make and have insane earnings, marketshare isn't that big of a deal. As an Apple investor, I'd be thrilled if Apple had more of a % f the market, but what the heck, they do ok.

Licensing the OS would bring fragmentation to the platform, and although you don't see much about iOS fragmentation, it's there, there are essentially 3 versions of the iPhone now 3GS AT&T (GSM), iP4 AT&T (GSM), iP4 Verizon (CDMA) (plus if you add the varying amounts of memory in the devices, it complicates matters) and unless Apple starts using multiple radios in each phone (which has been rumored, but adds to the cost of each phone, something Apple hates to do). Look for them to kill the 3GS to help avoid fragmentation after the iP5 is released, and there are rumors of an inexpensive pre paid iPhone variant to be released soon.
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
I'm really not trying to be an Apple apologist here, but, when you have a goodly chunk of the market, you sell virtually every device you can make and have insane earnings, marketshare isn't that big of a deal. As an Apple investor, I'd be thrilled if Apple had more of a % f the market, but what the heck, they do ok.

Licensing the OS would bring fragmentation to the platform, and although you don't see much about iOS fragmentation, it's there, there are essentially 3 versions of the iPhone now 3GS AT&T (GSM), iP4 AT&T (GSM), iP4 Verizon (CDMA) (plus if you add the varying amounts of memory in the devices, it complicates matters) and unless Apple starts using multiple radios in each phone (which has been rumored, but adds to the cost of each phone, something Apple hates to do). Look for them to kill the 3GS to help avoid fragmentation after the iP5 is released, and there are rumors of an inexpensive pre paid iPhone variant to be released soon.

Wouldn't that suggest that they are converging towards further fragmentation?

I don't disagree that their current model is working out for them, but I just have to wonder "what if" at the beginning they had gone the shotgun route what the mobile landscape would look like.
 

alent1234

Diamond Member
Dec 15, 2002
3,915
0
0
I'm really not trying to be an Apple apologist here, but, when you have a goodly chunk of the market, you sell virtually every device you can make and have insane earnings, marketshare isn't that big of a deal. As an Apple investor, I'd be thrilled if Apple had more of a % f the market, but what the heck, they do ok.

Licensing the OS would bring fragmentation to the platform, and although you don't see much about iOS fragmentation, it's there, there are essentially 3 versions of the iPhone now 3GS AT&T (GSM), iP4 AT&T (GSM), iP4 Verizon (CDMA) (plus if you add the varying amounts of memory in the devices, it complicates matters) and unless Apple starts using multiple radios in each phone (which has been rumored, but adds to the cost of each phone, something Apple hates to do). Look for them to kill the 3GS to help avoid fragmentation after the iP5 is released, and there are rumors of an inexpensive pre paid iPhone variant to be released soon.

the VZW iphone is a new radio chip that supports cdma/umts/hspa and everything else except LTE on the same chip. different radios for different carriers is a thing of the past
 

senseamp

Lifer
Feb 5, 2006
35,787
6,197
126
In hindsight, all the Motorola noise about being open to licensing WP7, and ready to sue other Android vendors seems like an old fashioned shakedown of Google for more dough.
 

jpeyton

Moderator in SFF, Notebooks, Pre-Built/Barebones
Moderator
Aug 23, 2003
25,375
142
116
In hindsight, all the Motorola noise about being open to licensing WP7, and ready to sue other Android vendors seems like an old fashioned shakedown of Google for more dough.
Or maybe just misdirection, like Google's bids at the Nortel auction.

It's a bargain purchase for Google and a great deal for MMI shareholders.

It's definitely NOT another "Microsoft paid $8.5 billion for Skype?!?" moment.
 

smartpatrol

Senior member
Mar 8, 2006
870
0
0
Wouldn't that suggest that they are converging towards further fragmentation?

I don't disagree that their current model is working out for them, but I just have to wonder "what if" at the beginning they had gone the shotgun route what the mobile landscape would look like.

It's hard to imagine that it would've been any better for Apple than it is now. Apple completely dominates the smartphone market when it comes to profit share. Apple rakes in 66% of the total smartphone profits even though they "only" sell 25% of the phones (see http://www.conceivablytech.com/8572/business/apple-captures-66-of-smartphone-profit-share )

Apple's strategy has never been about market share. For the last decade, their strategy has been to sell a small selection of high-quality products with large profit margins. (Remember "Microsoft doesn't have to lose in order for us to win" ?) It wouldn't help Apple to have HTC, Samsung, etc. selling lower-cost iPhone clones.
 

Pliablemoose

Lifer
Oct 11, 1999
25,195
0
56
Some interesting reactions from other players (from TIMN)

Samsung : We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem.”

HTC: “We welcome the news of today’s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.”

S-E: “I welcome Google‘s commitment to defending Android and its partners.”

LG: “We welcome Google‘s commitment to defending Android and its partners.”

Hmmmm...
 

the DRIZZLE

Platinum Member
Sep 6, 2007
2,956
1
81
In hindsight, all the Motorola noise about being open to licensing WP7, and ready to sue other Android vendors seems like an old fashioned shakedown of Google for more dough.

If that's the case it's completely appropriate. Motorola's CEO and board had an obligation to the shareholders to get the maximum value for the company.
 

Glitchny

Diamond Member
Sep 4, 2002
5,679
1
0
As far as the patent wars, MS and Apple have cases pending against Moto, this does very little to the patent cases... If they weren't afraid of going after Moto before, how does this change the landscape?

Hmmm... I dunno, am beginning to think this was poorly thought out by Google. Time will tell.

The Oracle case has always had legs, and there are some issues with the GPL now...

One thing to remember in those cases (at least in the Apple case) is that Moto sued them first, Apple just filed counter-suits. With the added $$ behind the cases from Google they could very well end up in Moto-Google's favor. Also with Moto having arguably the most extensive mobile patent library around we could see some settlements.
 
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mammador

Platinum Member
Dec 9, 2010
2,120
1
76
It makes perfect strategic sense IMO. Why control the most used OS, and not control the hardware? It puts Google on an even keel with Apple, RIM, etc.

One issue is perhaps more fragmentation of Android, but even then Google can control the handset designs, and even which version of Android to place on its phones.

How Jobs would respond to this move, I don't know. He has to though, since Google is now (like he) an OS and a handset maker. He faces stiffer competition now.
 

mammador

Platinum Member
Dec 9, 2010
2,120
1
76
Some interesting reactions from other players (from TIMN)

Samsung : We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem.”

HTC: “We welcome the news of today’s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.”

S-E: “I welcome Google‘s commitment to defending Android and its partners.”

LG: “We welcome Google‘s commitment to defending Android and its partners.”

Hmmmm...

What else can they say? Samsung's highest rated phone is an Android model, as is HTC's. More focus on Android means more potential sales.
 

runawayprisoner

Platinum Member
Apr 2, 2008
2,496
0
76
On the hardware/software front, I don't see how teaming up with Motorola would make Android any better a platform. Google could just commission them for the Nexus Three instead of buying them outright. And it doesn't look like Google is interested in releasing more models of the same Android phone, so... I'm still baffled. What does this mean exactly for the Android platform? Or for Google? They have the capability to create phones now, great. So they'll be able to create... one next phone? That doesn't seem right. Plus they still lack the capability to design their own SoCs and still have to rely on Qualcomm or TI, so...?

On the patent front, I fail to see how obtaining Motorola's portfolio gives Google any more of a standing against Oracle. Perhaps it'll help fending off Apple, Microsoft and co, but... what does it exactly do to Oracle? If Oracle has a case, they can still shut Android down in a heartbeat, or impose some serious limitations that would make Android no longer as free.

I am trying my hardest to wrap my head around this purchase, but it just seems like Google spent all that money for... nothing.
 

cronos

Diamond Member
Nov 7, 2001
9,380
26
101
What else can they say? Samsung's highest rated phone is an Android model, as is HTC's. More focus on Android means more potential sales.

I guess he was implying that they're reading from the same script. Obviously Google had contacted them beforehand and assure them that they're only doing this to protect Android (and not to compete with them).
 

lupi

Lifer
Apr 8, 2001
32,539
260
126
I think this could make things on the tablet front very interesting.
 

Deeko

Lifer
Jun 16, 2000
30,213
11
81
Does this make him the world's most successful patent troll? Because as far as actually running a business making mobile devices, he sucked.

Yea, the Droid wasn't successful at all. And Motorola totally filed for their patent to create the cell phone in 2009.
 

smartpatrol

Senior member
Mar 8, 2006
870
0
0
Yea, the Droid wasn't successful at all. And Motorola totally filed for their patent to create the cell phone in 2009.

Motorola Mobility was losing money. Sanjay made a hell of a lot more money by threatening patent litigation than he did selling Android phones.

Sent from my HD7 using Board Express
 

zerocool84

Lifer
Nov 11, 2004
36,041
472
126
It's hard to imagine that it would've been any better for Apple than it is now. Apple completely dominates the smartphone market when it comes to profit share. Apple rakes in 66% of the total smartphone profits even though they "only" sell 25% of the phones (see http://www.conceivablytech.com/8572/business/apple-captures-66-of-smartphone-profit-share )

Apple's strategy has never been about market share. For the last decade, their strategy has been to sell a small selection of high-quality products with large profit margins. (Remember "Microsoft doesn't have to lose in order for us to win" ?) It wouldn't help Apple to have HTC, Samsung, etc. selling lower-cost iPhone clones.

Phones are different than computers. You want as many people in the ecosystem as possible because more money is made from apps and accessories (licensing) than the actual phone. Apple always wants as much marketshare as it can get. Apple would never license out iOS as their only advantage is gone but you need marketshare in the smartphone world or else no one would be talking about a low-cost iPhone. Phones are just like video game consoles, get them to buy into your world then make your money with licensing.
 

GT1999

Diamond Member
Oct 10, 1999
5,261
1
71
I wonder what this means for Cable Co's and the set top box industry, seeing it includes STBs...
 

poofyhairguy

Lifer
Nov 20, 2005
14,612
318
126
On the patent front, I fail to see how obtaining Motorola's portfolio gives Google any more of a standing against Oracle. Perhaps it'll help fending off Apple, Microsoft and co, but... what does it exactly do to Oracle? If Oracle has a case, they can still shut Android down in a heartbeat, or impose some serious limitations that would make Android no longer as free.

Oracle doesn't want to kill Android- they want to profit off its success. Don't want to kill the goose who lays the golden eggs.

AppleSoft on the other hand want to kill Android. Both want to remove a competitor from the market.

What I imagine Google will do is put together these patents to form some sort of Android patent shield that is extended to any official Android partner. Much like was done with VP8.

This works great for Google as it gives partners advantages besides Google Apps and Honeycomb source code. Considering that Amazon seems intent on eventually releasing an Google-less Android device now Google has something to fight back with- Amazon's tablet won't be covered by these patents. Barnes and Nobles has to be really happy today.

It is obvious that Google doesn't want to sue other companies, it just wanted a big enough patent war-chest so if AppleSoft continued to believe the best way to compete with Android is lawsuits, Google can now trigger MAD for the entire industry.

I believe the statements from Android phone makers about the acquisition. I bet Google is already promising the umbrella. As of today Google also violated whatever patents HTC and Samsung are violating (at least a large chunk of them). It now has real skin in the hardware game. Its on.
 
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Doboji

Diamond Member
May 18, 2001
7,912
0
76
I don't see this changing things all that much... Look at the way EMC runs VMWare. This was a play for patents plain and simple. My guess is Moto Mobility continues to operate exactly as they have been, just under the Google umbrella. Meanwhile Apple can expect some fun countersuits and legal battles.

Google's strategy with Android is and always has been to keep it's ad/search engine in play as the market changes. As we move away from PCs and even Laptops, Android is Google's ticket to ride. Google is protecting their ticket... thats all. No way in hell we're going to see Google stores at our local malls... it's just not going to happen.
 
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