Motorola Could Bleed Google of $1 Billion a Year: 5 Reasons Why Google Acquired the Company
Google seems to be burning huge amounts of money on Motorola Mobility and according to experts, $1 billion could be the cost of what Google may face with Motorola each year. Know the possible reasons why Google purchased Motorola and keeps on financing its mobile division.
Android Defensive Strategy
Google purchased Motorola Mobility for $12.5 billion -- the highest among all of its deals in history. The company purchased YouTube for $1.7 billion while DoubleClick cost them $3.1 billion. According to Google's Chief Executive Officer Larry Page, the Motorola acquisition has strengthened the company's patent portfolio with 17,000 patents and 7,500 more still in pending from Motorola Mobility.
Moreover, the Android operating system is under protection of the sizeable patent portfolio against infringement and lawsuits from Apple, Microsoft and Oracle.
Manufacturing Power
Motorola made the first cellular phone and was the leader on the analog cell phone market, but they somehow failed in digital technology. Nonetheless, Motorola has enough capability to produce its own mobile handsets and with Google as its big boss, Android smartphones and tablets like Nexus can be housed in Motorola's headquarters.
Certain factors such as RAZR/Droid designs, hardware technology implementation, patent portfolio, unique software features and Android OS can be very useful if Google goes dire with its competitors, such as Samsung supporting Tizen OS.
Google Phone and Nexus Devices
As of now, ASUS and LG remain to be the positive producers of Nexus devices for Google, especially the upcoming Nexus 5 which will run Android 4.4 KitKat.
In contrast with Nexus phones, there was no Google phone until the arrival of Moto X. It features unique hands-free software via its virtual ear and Google Now.
RAZR and Droid Qualities
Motorola's RAZR and Droid slim and durable design made a positive mark among its purchasers, and Google won't have difficulty in utilising these hardware technologies on future phones such as Nexus 6 or Moto X 2nd generation.
Implemented Technologies
Aside from Google Now, certain technologies have been implemented on the Moto X phone:
- Touchless Controls: Moto X phone features most of its functions under Google Now such as hands-free mobility, asking of queries and Active Display, a low-energy consumption system which provides notifications without requiring for user to wake up the phone
- Quick Photo Capturing: Shaking the wrist will activate the camera and the entire screen acts as the camera button.
- Battery Saving: Moto ACTIV is added on the Moto X which enables the device to conserve more battery no matter which features are enabled and advanced sensors that requires minimal power to run
- Hands-free Authentication: Moto X detects password security via plastic tokens to save the effort on entering password whenever you activate the screen
- Customisable Design: Moto X is the first smartphone which can be customised upon order. Buyers may change the colour and some aspects of the exterior according to their style
With the growing threat from other operating systems emerging in the market, Google ensures that Motorola Mobility will play a role among Android devices in terms of software, hardware and durability.