Google won’t jeopardize its valuable alliance with Android makers by beefing up Motorola, but alternatively, take exactly what it needs from the beleaguered handset maker, leaving it to hemorrhage out.
Mototola reported losses again this quarter, with poor sales and merger-related costs dragging the organization down. Though Twenty percent from the company’s losses were related to its pending merger with Google, the others came from lackluster phone sales, as Samsung is constantly on the edge the corporation out of your market.
Google pledged to treat Motorola exactly the same it treats other Android partners, but becasue it is new business venture hemorrhages money, the search giant may end up treating the corporation worse than its competitors, simply absorbing its parts.
The search giant’s curiosity about Motorola comes from the business’s robust patent portfolio, that helps Google equip itself in patent skirmishes against Apple as well as other rivals. Google is also pushing into branded tablets and smartphones, also it may use Motorola’s hardware know-how to maneuver ahead with those plans.
Motorola is not keeping up with Samsung as well as other more productive rivals like HTC. The company would certainly need assistance from Google to recapture its market share. Instead, Yahoo is discussing the sale of Motorola’s more profitable home segment, leaving its flailing mobile component even deeper inside the hole, also it may not be long until it begins a good broader sale.
Google must perform tricky joggling act encourage its companion company without upsetting its more lucrative Android partners. Both HTC and Samsung, though initially publicly supportive of Google’s acquisition of Motorola’s patents, have expressed a willingness to enhance their phones on other platforms — mainly, windows — and Google will not be prepared to jeopardize the standing of its OS with two major phone makers.
Many Android manufacturers worried Google will favor Motorola in the wake in the acquisition, and bailing out your troubled company happens to be an unfavorable signal that Google may not need to send to the partners.
The merger between Google and Motorola is still pending Chinese approval, although Europe and U.S. gave the go-ahead. Since Motorola is banking for the acquisition, it can be in more trouble if your deal falls through.
Motorola may well not convert its finances without treatment, if Google efforts to profit the flailing company, it risks angering its Android associates, which can result in a major shakeup inside the mobile industry. Google’s alliance with Motorola gave it patents and boosted its hardware capabilities, however, if it endangers their partnership with Samsung, it could have are more expensive than it is worth.
Google spent a pretty penny on Motorola, however the biggest threat to its pocketbooks is really a collapse of its Android empire, which is likely to remain its priority.