15 August 2011
Google buys Motorola handset business– expert reaction
Ovum analyst Nick Dillon:
“As noted by Google, a key objective of the acquisition is to gain access to Motorola’s sizable patent portfolio, rather than just its hardware business. Having been outbid in the recent sell-off of Nortel’s patent portfolio, Google was clearly willing to look elsewhere to build up its arsenal of IP and in the light of the growing number of IP legal disputes in the smartphone market; this move will put Google in a stronger position competitively.
“However, the move raises concerns for the wider Android ecosystem as the acquisition means that Google will become a hardware vendor. With this, Google will move from the position of partner, to that of competitor to Android handset manufacturers, potentially placing significant strain on the Android ecosystem.
“If, for example, Google provides preferential access to the Android code to its own hardware division, this would place other vendors at a disadvantage and may lead them to question their commitment to the platform, potentially pushing some towards other platforms.
“Given Google’s recent moves to exert greater control of the implementation of the Android platform, such as restricting access to the Android source code to select hardware partners, such a move is not beyond the realm of the imagination. One beneficiary of any move away from Android would be Microsoft and its Windows Phone platform, as many larger Android manufacturers such as Samsung, LG, HTC and ZTE are also Windows Phone licensees.”
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