Tuesday, August 16, 2011

What does Google's acquisition of Motorola mean?


As I am sure you have heard by now, Google has bought Motorola.  Naturally, the biggest question about this acquisition is “why?”

Well, on the surface, it’s pretty simple.

Google is being sued by everyone because of its bestselling device line of Android phones and tablets.  Google’s biggest enemy, Apple, has been leading the charge in the ongoing litigation.

Simply put:  Google needed patents.

  •  In the technology industry, that is how companies keep each other in check from suing each other over their products.  If one company threatens to sue over a particular design point, the company under attack will threaten to countersue over another design point, which would inevitably lead to mutually assured destruction.

But there are other theories that could coincide with this acquisition. 

There is the obvious “Google needed a hardware line to compete” theory which is totally legit and probably played a big factor in its purchasing of Motorola, but there is one other theory I believe you might find interesting.

Google has the most profitable and efficient advertising stream in the world.  Some speculate Google will give out their devices for free, flooding the market with Google apps and creating Google customers which would then be funneled straight into advertiser’s sites.  This would also cause Apple and other companies to lower their prices…restricting their revenue streams.

But what does that mean for us?

It could be good; it could be bad.

The good is that it would interrupt the system causing companies to change and ultimately lower prices…giving us new technology forcing companies to compete to stay on top of an ever-changing market.

But some believe that this would cause net restriction with companies already tailoring their search results to what they believe the “consumer” wants.

With what some would call a duopoly in the market with Google and Apple on top…and you can throw Facebook in there…they could ultimately control everything you search…this would narrow your view of what you were searching for.  It’s almost as if they are telling you what they think you want to hear instead of letting you make an objective opinion on your own.

Some have even went as far to say that they would pretty much control what we think.

With this kind of power, they could sell ads with unknown profit potential…all while narrowing your view on the world…because let’s face it…everything is online, and I don’t see that changing anytime soon.

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