During a visit to South Korea, Eric Schmidt, Google’s executive chairman announced that Google will run Motorola as an independent business unit so as to reassure Android partners like Samsung and HTC that their use of Android won’t be affected by the $12.5 billion deal.
Google had purchased Motorola Mobility, the consumer electronics division of Motorola for a whooping 12.5 billion dollars. Motorola Mobility produces tablets, Bluetooth accessories, set tops, recorders, digital video and other products in addition to Android smartphones. It reported a net revenue of 3.3$ billion for the current year, thus forecasting that this deal is supposed to be a major leap forward in Google’s mobile ambitions.
Schmidt also revealed that Google plans to continue to run Motorola as a standalone business since running the company as a separate entity is part of Google’s desire to keep Android as an open source platform. Samsung, the most successful Android handset manufacturer, was also the first dealer to unveil the Samsung Galaxy Nexus, a device running on Ice Cream Sandwich that is Android 4.0 update. This move is supposed to have reassured Samsung that Motorola deal won’t be interfering in its use of Android. However analysts have warned that Google’s purchase of Motorola could have huge benefits for Microsoft by forcing companies like Samsung and HTC that flavored Android platform, to switch allegiance to Windows phone. As such Google seems to be working hard to avoid any such situation.
In the recently released Steve Jobs biography, the former Apple chief executive was outraged at the fact that Androids been using Apple’s ideas and had threatened “thermonuclear war” with Google over the issue. Thus Apple lawsuits against Android and Android hardware manufacturers continue. But Schmidt has been clever enough to suppress all forms of criticism by suggesting that Google’s OS was way ahead in development than iOS. In a letter sent to senators to investigate Google for alleged anti-competitive behavior, Schmidt has referred to the fact that Apple’s Siri voice technology could affect Google’s dominance in the search market.