Motorola today split itself into two halves. The more volatile consumer cell phone business is now called Motorola Mobility. While the much more stable commercially focused radio, barcode scanner, and cellular network business is now Motorola Solutions. Both are trading as separate entities on the NYSE. Both of which were up today. So, why do I think that one half will die? When it comes to the cell phone business, Apple and to a lesser extent RIM and anyone who makes an Android phone have already shoved Motorola out of the market. Face it, the high water mark for Motorola was the flip phone. It’s been all downhill from that point onwards and is facing a slow death. The Motorola Solutions half is much more stable from a business perspective, so I think that will be around for a long time. So perhaps this is an easy way for Motorola to get rid of a business that would eventually kill it outright.
We’ll see in a year or two. But I think I’ll be right on this one.
Google Buys Motorola…. It’s About The Patents
Posted in Commentary with tags Android, Motorola on August 15, 2011 by itnerdBy now you’ve likely heard that Google bought Motorola’s cell phone business. You might think it’s about making phones. It’s not. It’s about the patents. Here’s what the Google Blog had to say:
We recently explained how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The U.S. Department of Justice had to intervene in the results of one recent patent auction to “protect competition and innovation in the open source software community” and it is currently looking into the results of the Nortel auction. 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.
It truly sounds like Google is getting ready to go to war against Apple and Microsoft. Oh, and before you think that other handset makers like HTC would be unhappy about this… Think again:
This acquisition will not change our commitment to run Android as an open platform. 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.
Whether this actually happens remains to be seen, but it’s the thought that counts. Who’s the big loser in this? In my humble opinion, RIM. This is one headache that they didn’t need.
Game on!
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