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Rumor: Google May Sell Motorola Unit To Hawei

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Apr 17, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Rumor: Google May Sell Motorola Unit to Huawei (click for full article)

    "Selling Motorola Mobility after its acquisition would be just silly, but that's the latest rumor.


    Unnamed sources from Asia are claiming that Google has already offered to sell Motorola Mobility to China-based Huawei Device at a high price. The news arrives as Google and Motorola wait patiently as China decides whether the $12.5 billion purchase will violate the 2008 Chinese Anti-Monopoly Law even though the acquisition has been given the green light by Europe, the United States and South Korea. That said, Google really can't sell anything until China gives the thumbs up too.


    So why purchase Motorola only to sell off its hardware division thereafter? To gain its patents. There are 17,000 of them which could help protect Google's Android from a legal assault from the likes of Apple, Microsoft or some other patent trolls. This move would also help manufacturers defend themselves against the same patent sharks seeking to gain a wad of money while discrediting Google and those who follow it.


    Yet having an in-house manufacturer would mean that Google could produce its own smartphones and tablets without having to out-source Google Experience Devices to other manufacturers. Recent reports suggested that such a plan is already in the works, that Google will release a new branded tablet once the initial smaller one produced by Asus hits store shelves later this year.


    But there seems to be a great disturbance making waves through the Android community thanks to Motorola. Reports claim that many manufacturers don't want to bow down to Google's ways, and intend on releasing Android devices with a customized Android OS. They're uncertain about the Motorola acquisition and fear they will come second. The "forking" of Android -- as seen with Amazon's Kindle Fire -- could only cause even more fragmentation, thus pushing developers to solely work on iOS as it would be cheaper, easier.


    While Google doesn't charge manufacturers to use Android, the search engine giant makes its money through advertising on the OS. What Google doesn't need is to make these manufacturers mad to the point of total Android anarchy. That said, this is why Google would consider selling off the hardware business to Huawei while retaining the patents: to still the restless yet loyal natives.


    "Compared to what Google does, the smartphone business has horrible economics," says Bernstein analyst Pierre Ferragu. "The reason to buy Motorola was to strengthen patents. Now they have that, the logical thing is to sell the rest."
     
    Last edited: Apr 17, 2012

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