Google has purchased Motorola Mobility with the price tag of $12.5 billion. They hope to consolidate hardware and software so to better able to compete with the mobile phone giant, known as Apple. The acquisition gives Google direct control over mobile phone development and profits, which is said to put them head to head, if not above Apple’s iPhone’s.
There might just be a problem with this golden egg, since companies like Samsung, HTC, and Sony all run Android on their cell phones. These companies are now in direct competition with their Android software supplier – Google. Google has said that they will keep Motorola a separate company so that it will be just another licensee. This sounds great in principle, but it may be hard to convince the other licensees that is truly the case. Google may find other Android licensees dropping their software in the future do to this acquirement.
RIM may be able to profit from this situation since there will more than likely be some degree of in-house fighting between Google and their licensee’s. This will slow down many of RIM’s top competitors just in time for their new BlackBerry release. It’s been said that the new BB’s are high-end products that will be able to compete in this tough market, at least for the time being.
Google also may face more anti-trust problems this unification Motorola. Google has been rumored to throw their weight around to get what they want, and with Motorola Mobility now under their thumb will most likely bring further scrutiny from authorities already looking into anti-trust activities of Google and Android licensee’s.
With this big purchase comes uncertainty. Motorola Mobility stocks went up significantly, while Google shares dropped slightly. This new union could make Google the top dog in the mobile phone world within the upcoming months, but as any gamble, there are scenarios that predict many difficulties ahead for the mobile company.