The reason behind Google’s purchase of Motorola is finally coming to fruition

Motorola_X_Logo

Last week I wrote a story about my thoughts on where I think the Nexus line is headed. Google was never a hardware company, but when Android was at its infancy, Google got into it for investing in cutting edge hardware along with their partners to guide the ecosystem. Fast forward to now and things have changed a lot. Google no longer needs to guide the ecosystem. Companies like Samsung, HTC, LG, and Sony are doing just fine in investing in the latest and greatest. It is this reason that I believe Google will not release a Nexus phone moving forward, and instead, let OEM’s release Nexus Editions for their current hardware. The reason for all of this is quite simple, Google isn’t a hardware company, they are an advertising and service company.

A recent article at DigiTimes suggests that my conclusions were right. They are reporting that Google will cut a lot of the resources and money they have spent on handset development and shift it to improving its software and core business. Just take a look at this year’s Google I/O for further evidence. Hardware was never mentioned other than the Galaxy S 4 Nexus Edition. Yes, the reason was because they wanted to “concentrate on developers” since it is a developer conference, but it’s obvious that hardware isn’t going to be the focal point anymore, at least for handsets. They will still invest resources in other newer and developing technologies like Google Glass, set top TV boxes, and smartwatches.

This strategy started with the purchase of Motorola, but at that time everyone thought it was about the patents. Motorola’s patents were never all that successful, so why would Google want Motorola for just patents? It was the hardware. When I wrote that article last week, I got a lot of comments saying that Google needs to keep the Nexus program (for phones) alive because it’s the only way consumers can get decent hardware at an attractive price. That’s exactly where Motorola fits in. October/November is the time when Google usually introduces a new Nexus phone, but not this year. Instead, the Motorola X phone will be announced, and it will be a stock Android experience at an affordable price.

Google bought Motorola to help them get away from handset hardware, but everyone said that they couldn’t allow them to make Nexus devices since it would upset other OEMs. With this new trend, nobody has to worry about it since we won’t see pure Nexus phones moving forward. Instead, we will see Nexus Edition phones from any OEM who wants to participate. At the same time, Google’s Motorola will do the same, but the concentration will be on good hardware at an affordable price. It’s a win win for everyone because nobody needs to get upset at Google for treating Motorola as their pet and we have more pure Android devices to buy. Lastly, Google can concentrate on making Android and other core services better, but they can also concentrate on the hardware that still needs to be guided like Glass, TV boxes, and other wearable technology.

more info: DigiTimes

 

 

» See more articles by Robert Nazarian


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  • http://www.bordersweather.co.uk/ Andy J

    and as I point out time and time again – the Google Nexus Line is supposed to be good hardware at an affordable price – Google release the hardware cheap and makes up the losses from the Play Store. If there isn’t affordable devices – Android take-up slows down. Bearing in mind the message being pushed at I/O was about targeting developing countries where Android is starting to take off – I very much doubt Google are planning to stop releasing devices.

    • RobertNazarian

      And why don’t you think Motorola can fill this need? They are owned by Google and they can certainly make decent hardware. Motorola can offer devices below cost while Google makes it up in the Play Store.

      • phor11

        I think that would get them in trouble for anti-competitive behavior wouldn’t it?

        The reason why the nexus program hasn’t gotten them in trouble so far is because they’re still paying a manufacturer a decent margin and then reselling the phones at cost or at a loss (we really don’t know for sure).

        But as soon as you take that “participation in the market” out of the equation by no longer having to pay a fair price for the hardware to a third party, I think you get into murky legal territory where you could be accused of using your market position to drive the margins down for the entire hardware market.

        • http://www.bordersweather.co.uk/ Andy J

          And more importantly – you piss off your partners who stop making Android devices and look at other options – after all Mozilla is just getting started and will be looking for any hardware partner they can get hold of.

  • xJokerz

    I totally agree.

  • http://anonymous-x.live.com/ anonymous-x

    So it’s worth waiting & buying the new Moto X?

  • Kevin Jung Hwang

    here i thought i should just get galaxy s4…

  • crhylove

    What’s affordable? ~$100? That would be a game changer, especially if the device rocked!

  • http://www.hopy1.com/ hopy

    Thank you for sharing this information with us. What is given here is really valuable.

  • SomeGuy112

    I thought Googles Sundar Pichai said they will continue to make Nexus phones along side “Nexus Experience” phones when asked at the D11 conference like a week ago. Look up “Google will keep making Nexus hardware, says Sundar Pichai” in Google…

  • http://www.kizi1.org/ Kizi

    thanks for post. i like it

  • Consensusfr

    This is the worst analysis of a company’s strategy that I’ve ever read in my life.

    1. “Google isn’t a hardware company, they are an advertising and service company.” Oh yeah? So what’s Google Fiber and Google Glass?
    2. So, just because they didn’t say anything about hardware in Google IO 2013 that’s it, they are not doing hardware at all. What kind of argument is that?

    I look forward to let Google prove you’re completely wrong.

  • http://www.yepi1.info/ Yepi

    Google has made ​​giant crazy smartphone market with android operating system. so they quickly solve problems