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15 Aug


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What Impact Will Google’s Motorola Acquisition Have on Mobile Market?

August 15, 2011 | By | No Comments

Early this morning Google announced that it will acquire smartphone producer Motorola Mobility for around $12.5 Billion (or $40 per share). This is a major announcement with Google’s Android Platform battling Apple’s iOS system for smartphone computing supremacy.

Google’s CEO Larry Page insists that, “this acquisition will not change our commitment to run Android as an open platform.” According to Page’s blog post, “Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business. Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences.”

What does this mean for the future of the mobile market?

Larry Page made it very clear this morning that the competition is on, “Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”  I think it’s great that Page lists Microsoft and Apple by name; it shows Google’s commitment to controlling this market space and making it more difficult for competitors to keep up.

If the Android platform remains open, I find it hard to believe that Apple or Microsoft will be able to keep up.  Apple’s iOS (I own an iPhone) will remain popular despite Android’s size and who knows they might make some big move or acquisition to beef up their mobile offering very soon.

The market will remain open but Android use will see small growth as a result of Google’s Motorola acquisition.  Although Mashable announced 12 days ago that Android had captured nearly 50% on the smartphone market, I don’t see the number changing dramatically because Motorola was already making Android driven smartphones before the Google deal.  It will be very interesting to see how all of this plays out.

What do you expect to see from the Mobile Market in the future?

Michael F. Lewis II is a Social Media Consultant and Marketing Analyst for Social Strategy1.  He contributes several blogs weekly to the SS1 site.  Connect with Michael on Twitter via @mlewii.

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