Google admits that it has serious plans to build next-generation smartphones with the acquisition of Motorola Mobility and clearly understands the benefits of having both software and hardware under control. But at the same time Google wants to make it clear that it does not want to lose its current Android partners and market share.
“I couldn’t give you a percentage, but the majority of the reasoning had to do with the fact that we benefit from having a hardware partner at Google who knows how to build the next-generation of phones. [...] The fact that they also had one of the best portfolios was certainly a component in our decision, but certainly not the only one," said Eric Schmidt, chairman of Google, in an interview with Bloomberg TV.
Building own smartphones or tablets powered by Android operating system (OS) will clearly help the Internet service giant to better understand the needs of its hardware partners and better compete against Apple's iOS thanks to ability to quickly respond to new challenges. However, Google will have to ensure that both Motorola Mobility as well as companies like Samsung Electronics or HTC receive the same treatment and continue to produce competitive Adnroid-based devices.
"Google won’t do anything with Motorola that would screw up the dynamics of that industry, that we need strong, hard competition among all the Android players, that we won’t play favorites," said Mr. Schmidt.
But while Google may be excited about Motorola, it is pretty clear that the company will have a hard time fighting back the market share that Motorola has lost over the past few years. For example, at present Motorola phones are unavailable in a number of European countries and the company also does not have a clear flagship offering like the RAZR back in the mid oughts.