Beyond Smartphones What’s next for Google and Motorola?
Submitted by Aaron Huber on August 16, 2011
Google TV
requires a box, much like a cable or satellite box, and integrates cable or
satellite, internet, and iPhone apps, all accessible from a TV set operated
from the customer’s smartphone. So far
there has been little consumer interest in Google TV. Are consumers simply spending less time in
front of their TV sets, or are they weary of having one more box to deal
with? With Google’s control of Motorola,
a manufacturer of cable boxes, Motorola could sell cable and satellite boxes
enabled with the Google TV option. Now
Google just needs to improve Google TV in order to truly offer more value to
its users.
In our July 22 post, Three
Hot Tech Stocks, we mentioned that Microsoft’s partnership with Nokia could
help both companies compete in the Smartphone sector. Now Microsoft can integrate its Windows smartphone
operating system into the Nokia hardware for a more harmonious union. We also asked, how would Google monetize
Android? And with all their cash, what
new divisions or surprise acquisitions might Google roll out next?
Google began to answer our questions this week by acquiring
Motorola Mobility for $12.5 billion. But this deal isn’t about manufacturing and
selling mobile phones. Motorola holds
numerous technology patents that may be very valuable to Google. In addition, by joining the two companies
under on strong legal team, Google can protect Android and its users, including
Samsung, HTC Corp, and Motorola.
Smartphones with the Android operating system are in direct
competition, not just with the previously mentioned Microsoft Windows/Nokia
platform, but with the original Apple iPhone. Apple Inc. has already sued Android users, such as Motorola Mobility,
multiple times over patents Apple holds related to the iPhone. The best way to fight a patent lawsuit is
with more patents, of which Motorola holds over 17,000.
With over 17,000 patents, including second-, third-, and
next-generation mobile data technologies, now protecting Google from copycat
complaints by Microsoft and Apple, will Google have the strength and market
share to monetize Android? Or is Android
just a stepping stone toward control of a yet to be seen market by the Google
empire? Will Google use its new arsenal
of patents to fire legal attacks back at Microsoft and Apple?
Google has not hidden the fact that they purchased Motorola
for the patent protection. Google has
said it will keep the two companies separate; the Android business will
continue as before and Motorola will remain segregated. However, many predict that Google will acquire
the patents for it’s own benefit and spin off or sell the manufacturing side of
Motorola in order to streamline it’s portfolio.
