The digital battlefield ... or why Google bought Motorola Mobility


It's been an intense month: Apple became the most valuable company in the world, worth US$350.1 billion, even for a few moments. Three days later, Google bought Motorola Mobility for US$12.5 billion (with an over price of 63%, according to Gartner Group).

Why did Google CEO Larry Page decide to buy Motorola Mobility ? We have to go back in time and remember that he was the one who started the mobility process inside Google buying a “little” company called Android Inc. six years ago for estimated US$50 million. Page knew then that the mobile Internet would be the cash cow in the future, and focused his attention on that initiative. His theory was confirmed when Apple released the iPhone in 2007. He personally started going after partnerships with smartphone companies, among them LG, Samsung and Motorola.

Now, what does Google have?

It owns the leading operational system — Android — with 43.4% market share and runs on smartphones of 39 manufacturers, and their more than 300 different models. This is good to know, but now we need to analyze it a little deeper.

With the acquisition of Motorola Mobility, Google now has more than 12,000 registered mobile solutions patents, which allows it to have more control over future projects and Android’s development.

But. Yes, there is always a “but.”

The smartphone companies that are Google partners are now a bit worried that, after Google starts selling their own mobile devices, they may become competitors and may have to change their partnership deals. The same thing happened when Google entered the smartphone market in 2008, releasing the G1. That was the moment when Steve Jobs declared: “We did not enter the search market, and Google did enter the smartphone market.”

You may think that Google is fighting too many battles. It’s competing with Apple on mobile, with Microsoft on Internet, with Facebook, with social networks and with TV operations with Google TV and YouTube. Besides all the content providers of its search engine.

Microsoft CEO Steve Ballmer declared that the Google strategy was a great opportunity for Microsoft because he envisions that many of the actual Google partners, like Samsung and HTC, may abandon Android and start using the Windows Phone platform. Microsoft is positioning itself to be the third most important ecosystem in the market. They signed an important deal with Nokia that will allow Windows Phone to be on all Nokia smartphones.

Today, Android has 43.4% market share, followed by Nokia’s Symbian with 22% and Apple’s iOS with 18%. A recent study by IDC (International Data Corporation) noted that the Windows Phone and its future versions can reach a market share of 20% in 2015, surpassing Apple with 17%.

The three companies are moving fast. They know they can’t waste a single minute.

In the middle of this battle of giants, the only important thing is to be prepared, and to have apps and mobile sites available to the consumers. They are the ones who will define which company will be number one, two and three …

And they will do it with their mobile devices in hand!

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