Google Acquires Motorola: Global Smart Phone Domination?
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August 29, 2011 1:00 PM
By now, you’ve heard about Google’s acquisition of Motorola Mobility. As the largest deal in Google’s history (a whopping $12.5 billion!), there has been, unsurprisingly, a flurry of debate and discussion. There may be some significant change on the horizon, but what does it mean for the industry?
On one hand, the deal puts Google in a position to settle the tumultuous patent wars between the “big 3” industry players: Microsoft, Apple and Google. (Case in point: Motorola’s lawsuit against Apple for violation of patents is merely one of many still pending). Currently, the FTC is undergoing a full-scale scrutiny of Google’s business, which will provide another layer of complexity to this already- tangled battle.
Above and beyond patents, however, the deal works to support the Android platform. With the explosion of Android phones on a global scale (150 million), Google is in an interesting position to take on the dominant mobile device, the iPhone. Some have speculated that this bold acquisition is paving way for a Google phone, and although there haven’t been any definitive claims about this yet, the opportunity is undeniably lucrative. Seizing control of the hardware and software process enables Google to move one step in the right direction to usurping Apple’s domination of the mobile device market.
Another interesting dimension to the deal: it may also prime Google for a competitive edge in the set-top box and cable-modem market. Both Google and Apple have been testing the TV waters (GoogleTV launched last spring with minimal traction so far) and the acquisition may bring some wins for them in this space.
Amongst the speculation, one thing is for certain: the acquisition indicates Google’s commitment to mobile as a key driver of its future growth, and if the deal fuels a retaliatory consolidation from Apple, it could mean some dramatic changes in the mobile space.
Will Google and Apple go head to head? Let us know what you think! For those who love polls, check this one out on Mashable...
Originally posted on Marqui's Web Marketing Blog
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