Motorola acquisition could lead to “pure Google” phones

Google’s $12.5bn (£7.7bn) acquisition of Motorola’s mobile division could see the launch a “pure Google” smartphone device, according to a source familiar with the matter.


The transaction could give Motorola the edge against other handset manufacturers that use the Android operating system, such as HTC and Samsung, by allowing the company to produce a range of phones that are more succinct with Google’s software.

The acquisition, which will still see Motorola Mobility running as a separate business and licensee of Android, will provide the former company with “money can’t buy marketing”, according to the source.

They add: “This provides Motorola with the kind of advertising that would be difficult to pay for. This could potentially allow it to build something unique, that other companies couldn’t do, like a pure Google device.”

Google has already launched the Nexus range of own-brand smartphones, although this included devices built by HTC and Samsung rather than its in-house developers.

The Nexus range was met with a muted response by both carriers and consumers and has failed to take a considerable share of the global smartphone market.

Motorola will hope the Google deal will replicate its peak at the top of the mobile market it reached after the launch of the RAZR camera phone in 2004. Since then, Motorola been usurped in sales figures by Apple and Sony Ericsson, which produced more innovative products at a quicker rate.

Motorola was the eight-largest smartphone vendor in the world in the second quarter of 2011, according to IMS Research, and currently has just a 0.6% share of the UK smarphone market, according to comScore.

Sanjay Jha, CEO of Motorola Mobility, said in a statement: “Through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses.”

For Google, the acquisition marks its first significant move into the handset market, which it will be hoping will boost Android’s global market share dominance by creating an “ecosystem” to align Motorola’s devices with the operating system.

The deal also strengthens Google’s patent portfolio, which its CEO Larry Page says will enable the company to better protect itself from “anti-competitive” threats from Microsoft, Apple and other brands.

Details about how the acquisition will affect marketing or staffing at both companies are not thought to be revealed until global competition authorities have approved the transaction, which is expected to close by the end of 2011.



Women invest in monthly mags over weeklies

Lara O'Reilly

ABC: Women are choosing to invest in larger and the less frequently published lifestyle titles rather than celebrity and fashion weeklies as the biteback from the recession continues to take its toll on magazine readers.


Brands taking the law into their own hands

Michael Barnett

“The advantage that household brands will have over the legal profession is that they are recognised, whereas most lawyers are not”, read more here Read our case study on QualitySolicitors who “want to become the legal equivalent of Specsavers”, here Check out top brands discussing their legal plans, here Legal Industry experts give their viewpoints, […]

Co-creation can be so much more than this

Richard Madden

Brands that are pestering disengaged consumers for ideas should look to John Deere to see what co-creation can really do. Something strange has been happening this summer. And I don’t just mean with the weather. Or last week’s spontaneous street parties. A multitude of brands have somehow assumed that I want to be part of […]


    Leave a comment