Tuesday, August 13, 2013
Two years after acquiring Motorola in a bid to win a patent war, Google is still trying to figure out what to do with the company – and it’s still losing money on it. Google’s latest quarterly earnings report shows that Motorola turned in a net loss which weighed down on Google’s overall profitable quarter, though Google is aiming to change that with the launch of the Moto X phone this week. If successful, the X phone could prove to be the first silver lining in an acquisition which has thus far been nothing short of a nightmare for Google.
With Google and its Android partners facing intellectual property litigation from Apple in courts worldwide, Google believed that it could gain the upper hand by acquiring Motorola Mobility, an early cellphone pioneer which had since devolved into one of the less successful Android hardware vendors. Some of Motorola’s mobile patents predated Apple’s work on the iPhone, and those patents were used to file counter-suits against Apple. But those efforts proved wholly unsuccessful, leaving Google having spent $12.5 billion on a company it didn’t want just to get patents that turned out to be worthless.
Since that time Google has done little with Motorola, as the subsidiary has released new variants of its Droid phones which haven’t made a significant dent against the more popular Android vendors. But now the “X phone” project, which Google has purportedly had kicking around since shortly after the iPhone launched, has been designated a Motorola product. That makes the Moto X phone Google’s first attempt to do something constructive with Motorola and finally get something out of its original investment. It should rack up at least enough sales to make the Motorola buyout something other than a train wreck.
By: DocMemory Copyright © 2023 CST, Inc. All Rights Reserved
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