Should Motorola Work With Google Only For Limited Number Of Handset Devices ?


A large number of manufacturers are presently focusing on a sequence of the Smartphone lineup. They are indulged in the race like headless chickens instead of making a unique Smartphone device. At present, the manufacturers are just throwing the Smartphone’s models with trembling swiftness.  Thanks to Motorola; at least it tries to move out from the conventional rushes. Motorola CEO—Sanjay Jha—said that the company has planned to release fewer newer models this year and going to concentrate on increasing the marketing dollars.

The CEO said, “A lot of products that are roughly the same don’t drive the market to a new place. I made this decision independent of what the others will do. We’re doing what we think is the right thing. The company plans to pursue fewer new ideas in an effort to make more things stick.”

Recently, the company has also made such mistake, and has released the Droid Bionic and Droid Razr one after another. The company has released an upgradation of Droid Razr—Droid Razr Maxx–on Monday with a bigger battery.

Last year the company introduced an innovative lap dock in their smartphone which can be easily connected into bigger screen and the keyboard. Using the lack dock, a Smartphone can do similar as Laptop can do.

Presently, the acquisition of Motorola by Google is under the legal consideration and is expected to end in the beginning of this year. Google persuaded to acquire Motorola Mobility by staking of $12.5 billion in August 2011. If Google succeeds to acquire Motorola than it will definitely be helpful for both the companies. Google and Motorola together will not only accelerate innovation but users would also have the option of the better phones at nominal price. The acquisition might bring an integrated Android ecosystem in order to contend the rivals like Apple. Motorola mobility’s patent portfolio will help the Android ecosystem which is an open source.

On Monday’s report, Google share mounted down by 4% due to speculation about the firm’s acquisition of Motorola. However, at the end of last week, Motorola warned that their total sale is expected to have $3.4 billion in Q4, 2011, which is below to the analysts’ expectations $3.88 billion. The Motorola has claimed the intense competitive environment and high legal cost associated intellectual property litigation by Microsoft for such decrement.

The last week’s statement of Motorola has alarmed investors concerned about Google’s entry with Motorola in such highly competitive Smartphone market. Motorola is expecting to have “modest profitability” on a non-GAAP basis in the last quarter, the Q4 report of the company is still to come.  Considering the total shipment of handset, the company has done well; the number of shipment in the last quarter is expected to have 10.5 million mobile devices, including about 5.3 billion of Smartphone.

The issues are: first Motorola’s decision to make fewer lineups but more competitive phones, second the company’s sales revenue missing to the analyst expectation and third, Google’s shareholder’s distraction for the Motorola’s acquisition caused 4% fall in the company’s market share last week. Both Motorola and Google would like to dominate the mobile market with distinct Smartphone, which is only possible if both work together on a single platform.

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